In the first 7 months of 2024, the whole country consumed nearly 32 million tons of cement, down compared to the same period.
According to data from the Cement Industry Report, domestic cement consumption in the first 7 months of 2024 reached nearly 32 million tons, still down 4% compared to the record low level of the same period last year.
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The real estate market has not shown any signs of recovery, cement supply far exceeds demand... are the main reasons for the decrease in cement consumption demand.
According to data from the Cement Industry Report, domestic cement consumption in July 2024 is estimated at 4.65 million tons, up 4% over the same period in 2023, but the cumulative 7 months of 2024 still decreased by 4% over the same period, reaching nearly 32 million tons.
The export channel is also not more optimistic, when the output is approximately the same as the same period last year with 18.4 million tons, but due to low export prices, the value decreased sharply, earning only 705 million USD, equal to 87.5% of the same period's performance.
It is estimated that cement export prices continued to decrease in July, at 38.8 USD/ton, 13% lower than the same period last year.
The Vietnam Cement Association (VNCA) said that at present, the output in the domestic market is very difficult, due to the lack of real estate projects, the lack of social housing projects, fierce competition on selling prices among domestic manufacturers...
In the past 3 years, the construction materials industry, including cement, has faced many difficulties, with declining output and revenue, leading to risks affecting the economy and the country's industrialization and modernization.
Since 2023, clinker and cement production has declined dramatically. The entire industry's operating lines have only reached 75% of their design capacity. In 2023 alone, 42 lines had to stop production for 1-6 months, some of which had to stop for the whole year.
The Ministry of Construction and VNCA have proposed key solutions to remove difficulties, in which the common solution is to promote public investment; remove difficulties for the real estate market; strengthen the implementation of the investment project to build at least 1 million social housing apartments; increase investment in cement concrete roads...
Most recently, Deputy Prime Minister Tran Hong Ha has just signed and issued Directive 28/CT-TTg dated August 26, 2024 of the Prime Minister on a number of solutions to remove difficulties and obstacles, promote production and consumption of cement, steel and construction materials.
To remove obstacles and promote production and consumption, the Prime Minister requested that all levels and sectors need to closely follow reality and perfect institutions and policies to support production and business enterprises in this field.
That is to promote public investment, build transport infrastructure, irrigation, invest in developing urban and rural infrastructure, national defense and security projects, marine and island projects; implement the project to invest in building at least 1 million social housing apartments, study to increase the rate of choosing the option of using reinforced concrete overpasses for expressway projects, prioritize investment in cement concrete roads in developing rural roads in mountainous areas, areas with difficult terrain, etc.
Cement industry enterprises expect production and sales to be vibrant at the end of the year, thanks to increased public investment and the recovery of the civil construction segment.
At the same time, the cement industry also looks forward to the Prime Minister's direction, assigning the Ministry of Finance to study and adjust tax policies on exporting clinker and cement products to ensure competitiveness with other countries exporting these products, and remove difficulties for exports.
Source: https://baodautu.vn/batdongsan/7-thang-dau-nam-2024-ca-nuoc-tieu-thu-gan-32-trieu-tan-xi-mang-giam-so-voi-cung-ky-d223782.html
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