A series of cement manufacturers have adjusted their cement prices upward since October 20, 2024, a move aimed at partially offsetting production costs amid rising electricity, coal, and packaging prices.
 |
| Cement prices will increase by 50,000 VND/ton from October 20, 2024. |
A series of large cement manufacturers such as Vicem Bim Son, But Son, The Vissai, Thanh Thang Group Cement, Xuan Thanh Cement... have just announced increases in product prices to offset the increase in input costs.
The price increase in this adjustment period was set by businesses at VND50,000/ton. The Vissai alone increased by VND46,300/ton.
According to the Vietnam Cement Association (VNCA), electricity accounts for about 15-20% of cement production costs, depending on each factory. Therefore, when electricity prices are adjusted to increase, cement companies will inevitably have to increase prices to stabilize production and business. 
A representative of Thanh Thang Group Cement Joint Stock Company said: "The electricity price has just increased by 4.8%, while the electricity price accounts for 14-15% of the cost of products, causing production costs to increase. Although the company has applied many solutions to cut costs and improve productivity such as utilizing excess heat from production lines, it still cannot compensate for production costs."
Increasing the selling price by 50,000 VND/ton will partly help cement manufacturers ensure stable production and business, and maintain product quality.
According to the manufacturers, according to Decision No. 1046/QD-EVN of Vietnam Electricity Group (EVN), from October 11, 2024, electricity prices will increase by 4.8% compared to before. In addition, in the context of tense military conflicts in the world, causing input fuel prices such as coal, oil, etc. to fluctuate greatly, and are expected to continue to increase in the coming time, cement cannot maintain its old selling price.
The Vietnam Cement Association (VNCA) said: “It is inevitable that manufacturers increase cement prices, because for the past several years, cement has been sold below production costs. If prices are not adjusted to partially offset input costs, businesses will not be able to survive.”
In the first 9 months of 2024, domestic cement consumption was approximately the same as last year and continued to remain low. Export channels also decreased, reaching only 22.5 million tons in 9 months, worth 863 million USD, down 4.3% in volume and 15.1% in value compared to the same period.
The list of cement producers increasing prices continues to grow in the coming days.
Source: https://baodautu.vn/xi-mang-dong-loat-tang-gia-d227996.html
Comment (0)