Cost Drives Vietnam Cement Price to Rise, Two Clinker Lines Will Be Put into Production in the Year

Last week, Vietnamese cement companies successively raised the sales price of cement by 100,000 VND/ton (equivalent to RMB 27.8 yuan). The rise in cement prices is mainly due to the rise in raw material prices, especially the sharp rise in coal and gasoline prices, which has increased the pressure on cement enterprises. Many production lines have been put into operation in

Vietnam in recent years. In 2020, three cement clinker production lines will be put into operation in Vietnam, namely, Yongsan Cement (6000t/d), Xinsheng Cement (5000t/d) and Chengsheng Cement Line 3 (6000t/d). In 2021, a 6000t/d cement clinker production line (Chengsheng Line 4) will be put into operation in Vietnam, with an annual capacity of 2.3 million tons. By the end of 2021, Vietnam had 87 cement clinker rotary kiln production lines with a capacity of 110 million tons. However, due to the adjustment of the proportion of admixtures, Vietnam's cement production can be increased by 20%, making it the third largest cement producer in the world.

At present, Vietnam's domestic cement consumption capacity is relatively limited, below 65 million tons, and the domestic cement demand in 2022 is expected to be 63-64 million tons. In 2022, two cement clinker production lines are expected to be put into operation in Vietnam, including 4.5 million tons of cement per year for Xuanqing Cement (12,500t/d) and 2.3 million tons of cement per year for Longcheng Cement (6,000t/d).

With the continuous increase of production capacity and low domestic consumption capacity, producers are still facing greater challenges. Vietnam's cement export will remain an important channel for cement enterprises. In 2021, the export plus domestic consumption of cement will exceed 100 million tons, which is the highest in history.