Cement, Fertilizer Prices to Rise Due to Higher Input Costs

Vietnamese cement makers said they would increase their prices by VND20-30,000 per ton, as power and coal rates are slated to rise 7.6 per cent and 20 per cent respectively, pushing up cement production costs by VND30,000 per ton on average.

 

The Vietnam Cement Association said with electricity and coal rates hikes, cement prices must be higher; however, domestic cement makers have not imposed further increases, anticipating an influx of foreign cement in the local market shortly after the country’s WTO entry.

 

The domestic cement demand will continue to rise through 2010, but with about 30 production plants with a combined capacity of 44.4 million tons a year becoming operational by that year, cement surplus will reach some 10 million tons.

 

At the same time, domestic fertilizer producers also said they would raise their product prices due to the power and coal prices hikes and transport fees. (Labour, VNN, VNS)