Cement export to ease overproduction

March 05, 2014 | 14:43

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Promoting exports is still viewed as a potential solution for a cement industry currently domestic oversupply pressures.

Hoang Manh Truong, chairman of the board of the Vissai Ninh Binh Group, a big multi-field non-state economic group with cement production as one of its core functions said the group’s cement and clinker was being exported healthily, fetching $54-60 per tonne depending on the market.

He said that last year although domestic consumption was low, the group reached its sales target of 6.2 million tonnes.

Vietnam Cement Industry Corporation (Vicem), which holds a 38 per cent market share, exported 2.3 million tonnes of cement and clinker last year, a 7.8 per cent increase on-year.

Chairman of the board of Vicem Luong Quang Khai said exports were key to helping ease oversupply pressures.

“Exports will help offload surplus inventories and attract foreign currencies. At current the clinker and cement export prices stand around $38 and $55 per tonne, respectively. And at this price Vicem can get back its production cost with a little profit,” he added.

The group aims to export 2.6 million tonnes of both clinker and cement this year.

Vietnam is estimated to produce 8-10 million tonnes domestic surplus of cement every year. The oversupply resulted from a mushrooming of manufacturing facilities in recent years. At present the country has 106 cement factories.

The Ministry of Construction (MoC) estimates cement consumption will reach 62-63 million tonnes this year, a mere 1.5-3 per cent increase compared to 2013. It announced an export goal of around 14 million tonnes, on level with last year.

By By The Hai

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