Vietnam raises domestic cement prices amid rising costs, tightening supply

Vietnam's cement producers raised domestic prices by Dong 100,000/mt ($3.8/mt) effective Nov. 18, multiple Asia-based producers and traders told Platts on Nov. 21.

Market participants said the adjustment was due to persistently high input costs and tightening supply, which left producers with little choice but to raise prices to maintain stable operations and product quality.

They added that domestic manufacturers continue to face mounting cost pressure as coal, power and transport expenses rise. Even after implementing cost-cutting measures, many plants have been unable to offset raw material inflation, making a price hike necessary to sustain production and maintain output at required standards, according to producers and traders.

On the export front, producers and traders expect higher domestic prices to lift exports. "I believe that will support export price, especially clinker," a Vietnam-based producer said.

Traders said that Vietnamese clinker offers have been trending higher in recent weeks, rising to $31–$32/mt FOB by Nov. 20 from about $29.5/mt FOB on Nov. 6.

Platts, part of S&P Global Energy, assessed cement (ASTM type I) FOB Vietnam at $35.5/mt on Nov. 20, higher from $34.75/mt the previous week. Platts assessed cement clinker FOB Vietnam at $30.5/mt on Nov. 20, up from $29.75/mt FOB the previous week.