Cement Prices May Rise Following Coal Price Hike
The Ministry of Construction and the Vietnam National Cement Corp. (VNCC) has proposed the government to raise domestic cement prices if coal prices increase, state media said.
The corporation said production costs of one ton cement will increase by VND30,000 if the Vietnam Coal and Mining Industries Group (Vinacomin) raises coal price as scheduled. Thus, VNCC will spend additional VND200 billion (US$12.5 million) on coal each year.
Cement is forecast to suffer tough competition from 2007, the ministry said, adding that the industry will import 5-5.5 million tons of clinker next year.
The industry has targeted to no longer import clinker and become a cement exporter from 2009.
Vietnam is now home to around 70 cement plants and some 30 grinding stations.
This year, the country’s cement consumption is expected to reach 31-32 million tons, up 9 per cent against 2005.
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