Cement makers hike prices again on rising costs

Ha Tien 1 Cement JSC, a subsidiary of the Vietnam National Cement Corporation (VICEM) announced a hike of VND100,000 per ton for its Vicem Ha Tien brand of packed cement with effect from March 23. It will cost VND1.81 million per ton.

Hoang Long Cement JSC has increased its prices by VND120,000 and Thanh Thang Group Cement JSC has hiked the prices of its packed and unpacked cement, branded Thanh Thang and Thinh Thanh, by VND150,000.

According to the Vietnam National Cement Association, 13 manufacturers have increased prices.

Last December, cement prices had risen by VND80,000-90,000 per ton following a 7-10-percent increase in coal prices. Coal accounts for 40-45 percent of production costs.

Cement prices have been driven up by higher raw material and transport costs as gasoline prices are now at a record high.

Many cement producers reported significant falls in profits last year.

Ha Tien 1 Cement JSC said they were down 39 percent to VND370 billion. Bim Son Cement JSC and Hai Van Cement JSC, two other subsidiaries of VICEM, reported 46 and 80 percent declines.

Ha Tien 1 attributed the fall to plunging demand amid social distancing last year and higher costs.

Vietcombank Securities expected cement production costs to keep rising since the price of imported coal has shot up by 90 percent to US$154 per ton and that of domestic coal by 9-12 percent to over $50.