In the first 7 months of 2024, the whole country consumed nearly 32 million tons of cement, down compared to the same period.

In the first seven months of 2024, the whole country consumed nearly 32 million tons of cement, a decrease compared to the same period last year.

According to data from the Cement Industry Report, domestic cement consumption in the first seven months of 2024 reached nearly 32 million tons, still down 4% from the record low of the same period last year.

Domestic cement consumption in the first seven months reached nearly 32 million tons, a 4% decrease compared to the same period last year.

The real estate market shows no signs of recovery, and cement supply far exceeds demand... these are the main reasons for the decline in cement consumption.

According to data from the Cement Industry Report, domestic cement consumption in July 2024 is estimated at 4.65 million tons, a 4% increase compared to the same period in 2023. However, the cumulative consumption for the first seven months of 2024 is still down 4% compared to the same period, reaching nearly 32 million tons.

The export channel was also not much better, with production remaining approximately the same as the previous year at 18.4 million tons, but due to low export prices, the value decreased sharply, bringing in only $705 million, equivalent to 87.5% of the amount achieved in the same period.

Estimates suggest that cement export prices continued to fall in July, reaching $38.8 per ton, 13% lower than the same period last year.

The Vietnam Cement Association (VNCA) stated that currently, the domestic market is facing significant challenges due to a lack of real estate projects, limited implementation of social housing projects, and fierce price competition among domestic manufacturers.

Over the past three years, the construction materials industry, including cement, has faced numerous difficulties, with declining sales and revenue, posing a potential threat to the economy and the country's industrialization and modernization efforts.

Since 2023, clinker and cement production has declined significantly. Production lines across the industry are operating at only 75% of their designed capacity. In 2023 alone, 42 production lines had to cease operations for 1-6 months, with some lines shutting down for an entire year.

The Ministry of Construction and VNCA have proposed key solutions to overcome difficulties, including general solutions such as boosting public investment; resolving difficulties in the real estate market; strengthening the implementation of the project to build at least 1 million social housing units; and increasing investment in concrete roads...

Most recently, Deputy Prime Minister Tran Hong Ha signed Directive 28/CT-TTg dated August 26, 2024, of the Prime Minister on a number of solutions to remove difficulties and obstacles and promote the production and consumption of cement, iron and steel, and construction materials.

To remove obstacles and promote production and consumption, the Prime Minister requested that all levels and sectors closely follow practical realities and improve institutions and policies to support businesses operating in this field.

This includes boosting public investment, building transportation and irrigation infrastructure, investing in urban and rural infrastructure development, national defense and security projects, and projects in the sea and islands; implementing a plan to invest in the construction of at least 1 million social housing units; researching an increase in the proportion of using reinforced concrete viaducts for expressway projects; and prioritizing investment in cement concrete roads in the development of rural and mountainous areas, and areas with difficult terrain…

Cement companies expect a surge in production and sales towards the end of the year, driven by increased public investment and a recovery in the civil construction sector.

At the same time, the cement industry is also awaiting guidance from the Prime Minister, instructing the Ministry of Finance to study and adjust tax policies on the export of clinker and cement products to ensure competitiveness with other countries exporting these products and to alleviate 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