Vietnam, Indonesia cement makers lift prices on coal costs

Cement and clinker producers in Vietnam and Indonesia are raising selling prices, with several Asia-based market participants pointing to higher coal procurement costs and broader increases in production and logistics expenses.

In Vietnam, several producers announced price increases effective early October, citing rising costs for fuel, raw materials, transportation and other production inputs.

"Not only cement prices, but also bagging, barge and shipping costs have increased. I expect prices to rise by more than $2/metric ton," a Vietnam-based exporter said.

According to a Sept. 28 statement from the Vietnam Construction Materials Information and Data Center (BIDC), Vicem Hoang Thach will raise bagged cement prices by 70,000 dong/mt (about $2.70/mt) and bulk cement prices by 100,000 dong/mt (about $3.85/mt) from Oct. 1. Its CPC50 clinker prices will increase by 120,000 dong/mt (about $4.60/mt) for domestic sales. Other producers, including Thanh Thang Group Cement, Xuan Thanh Khanh Hoa and Xuan Thanh Quang Nam, also announced increases of around 70,000 dong/mt (about $2.70/mt) for cement products from Oct. 5.

Several Asia-based traders and producers noted that Indonesian coal procurement costs remain firm despite lower Indonesian HBA benchmark prices, as supply constraints and logistical disruptions continued to support spot coal values and production costs.

"Indonesian cement and clinker producers are facing similar cost pressure from the high coal prices too," said a Southeast Asia-based trader.

Export negotiations for 2027 cement and clinker deliveries were also heard reflecting expectations of higher production costs and greater market volatility.

"To maintain sustainable production and sales operations, we believe prices need to be higher than those agreed for 2026, as the market has become much more volatile and war-risk costs have increased," a Vietnam-based producer said.

Platts, part of S&P Global Energy, assessed cement (ASTM type I) FOB Vietnam at $38/mt on Sept. 24, unchanged from the previous week. Platts also assessed cement clinker FOB Vietnam at $32.5/mt, unchanged week over week.