Cement prices rise, profits to fall

July 04, 2022 - 09:41
Higher input costs have forced most cement producers to increase prices.

The production plants of VICEM Bỉm Sơn. Amid mounting input costs, the producer raised its cement prices by VNĐ70,000 on June 22. Photo vicem.vn

HÀ NỘI — Mounting fuel and coal costs have been added to cement producers' bills, leaving them no choice but to increase prices.

Price adjustments can be observed in almost all producers, with none willing to hold down prices to see profits eroded. Prices have been adjusted from VNĐ50,000 to VNĐ140,000 per tonne across the sector.

Trung Sơn Cement increased p30 Cement and PCB 40 Cement by VNĐ90,000 per tonne on June 10. Northern Cement Trading followed suit with price rises of VNĐ70,000 per tonne.

Southern Region Công Thanh Cement Trading and the Tân Quang Cement got in on the act with price rises of between VNĐ50,000 and VNĐ140,000 per tonne on June 15.

VICEM Hạ Long JSC. did likewise five days later, announcing price rises between VNĐ60,000 and VNĐ80,000 per tonne.

The latest price adjustments were made on June 25 by Vissai Hà Nam JSC., the Sông Lam Cement JSC., and the Xuân Thành Cement JSC. They announced price rises of VNĐ60,000 per tonne.

Experts believe that domestic consumption of cement will remain stable despite higher prices, as Việt Nam has been stepping up the disbursement of public money for key transport projects.

Profits are expected to fall in the short term. — VNS