Cement sales on rise

The construction ministry predicts domestic cement output will reach 79.45 million tons in 2013, 81.56 million tons in 2014 and 83.86 million tons in 2015, according to a report on the Government web portal.

Le Van Toi, head of the building materials department under the ministry, said that in the first half of May, some plants found it harder to buy clinker because of the increase in local cement consumption.

At most large cement companies, production and sales have improved. Positive signals from domestic consumption have urged some firms to adjust their export plans.

Nguyen Thi Tao, deputy general director of VICEM Hoang Thach Co., said consumption had rebounded since the second half of March and the first week of April. By the end of the first quarter, Hoang Thach had sold approximately 1.06 million tons of cement, up 4% year-on-year, exceeding its target.

Although the property market has not recovered, Hoang Thach is affected less than other companies because its products are mainly sold to individual customers. Currently, the company does not have inventory.

Hoang Xuan Vinh, general director of Cam Pha Cement Co., informed his company in the first quarter sold about 618,000 tons and produced a volume higher than the designed capacity.

On average, Cam Pha exports 35% of its output every year. However, last quarter, the company exported nearly 50% of its output.

The demand for cement for large projects has also increased, with bulk cement accounting for about 35%.

Luong Quang Khai, chairman of Vietnam Cement Industry Corporation (VICEM), said interest rate cuts and the warming construction market helped improve VICEM’s sales in recent weeks.

In the first quarter, VICEM sold over 4.9 million tons, 19.2% higher than its target, but still lower than the same period last year. However, the company still considers this as a good sign.