Q1 data cement favorable export forecast

09:00 | 17/05/2018 Trade

(VEN) - Preliminary data from the Ministry of Construction’s Building Materials Department show that cement and clinker exports soared in the first quarter of 2018.

q1 data cement favorable export forecast

Cement exports up 30 percent

Department data show that cement sales, both domestically and abroad, totaled about 7.96 million tonnes in March 2018, up 0.34 percent compared with February. This is equivalent to the sales volume of February 2017 and 25 percent of the 2018 plan.

In March 2018, Vietnam exported 2.4 million tonnes of cement, a rise of 30 percent compared with March 2017. In the first quarter of 2018, the export volume reached 7.51 million tonnes, up 28 percent compared with the same period last year.

Bangladesh was the largest among the 12 export markets of Vietnamese cement and clinker in the first quarter, accounting for 31.3 percent of total export volume and 27.6 percent of total export value, with 909,109 tonnes worth US$27.94 million, up 40.5 percent in volume and 45.2 percent in value compared with the same period last year.

The Philippines ranked second, accounting for 20 percent of total export volume and 25.8 percent of total export value, with 580,864 tonnes worth US$26.06 million, up 114.9 percent in volume and 85.4 percent in value.

Impetus for further growth

Despite oversupply and fierce competition among domestic businesses, Vietnam Cement Association President Nguyen Quang Cung predicted the 2018 cement export volume would exceed 18 million tonnes. One of the favorable conditions is China’s decision to reduce cement production to protect the environment.

“Another favorable condition is that the export tax applied to cement has been reduced to zero percent and cement exporters will get value added tax refunds according to Government Decree 146/2017/ND-CP. In late 2017 and early 2018, export prices of cement and clinker increased by US$5-7 per tonne. Exports to major markets, such as Bangladesh, Myanmar and Chinese Taipei, continue to surge,” Nguyen Quang Cung said.

To stabilize the cement market, the Ministry of Construction has coordinated with the Vietnam Cement Association to provide guidance for cement manufacturers in applying new techniques to increase output, reduce production costs and lower prices. Industry experts say that to withstand fierce competition in the global market, the Vietnamese cement sector also needs to establish large groups to promote sustainable exports.

A representative of the Agency of Foreign Trade under the Ministry of Industry and Trade believes that in order for cement to become a key Vietnamese export, state management authorities should maintain tight coordination to build a long-term export promotion strategy and encourage cooperation among manufacturers and exporters to improve product quality and seek new markets.

The Ministry of Construction predicts cement sales in 2018 will total 83-85 million tonnes, up 4-6 percent compared with 2017, with 66-67 million tonnes to be sold domestically and 17-18 million tonnes to be exported.

Lan Anh