Price increases for raw materials and cement continue

DNHN - In 2022, the cement industry will be under pressure to raise input costs due to increases in the price of raw materials, with coal accounting for around 30% of the cost structure for cement manufacturing.

The price of raw materials for cement manufacture, such as gasoline and coal, has risen dramatically, causing the production cost of this item to rise consistently.

This is also why many cement makers altered their market selling prices in June.

This is also the third increase in cement makers' selling prices in 2022. Notably, while the price of steel has fallen, the price of cement has continued to rise rapidly.

On June 20, several cement companies raised their rates. VICEM Hoang Mai Cement Joint Stock Company, in particular, changed the selling price of bagged and bulk cement products manufactured by this firm by 70,000 VND/ton and applied to Thanh Hoa provinces, Nghe An, Ha Tinh, Quang Binh, Quang Tri, and Thua Thien Hue.

From June 22, VICEM Bim Son Cement Joint Stock Company increased the price of cement products in bags and loose by 70,000 VND/ton; Long Son Cement Company increased by 60,000 VND/ton for all brands of bulk cement; VICEM Hoang Thach Cement Company increased from 50,000 to 80,000 VND/ton for multi-purpose and industrial PCB40 bagged and loose cement, and VICEM Hai Van Cement Joint Stock Company increased by 50,000 VND/ton for bag

According to experts, the cement industry will experience pressure to increase input costs in 2022 due to higher input material prices, with coal accounting for around 30% of the cost structure for cement manufacturing.

Domestic cement consumption, on the other hand, will rise again as Vietnam accelerates the disbursement of public investment resources and the building of numerous vital transportation infrastructure projects.

Even though the selling price has been raised to offset production costs, cement companies will still face significant pressure to retain their present profitability due to intense competition and low input prices for raw materials and fuel.

PV