HCMCity (VNS/VNA) - Demand for cement and clinker is expected toincrease marginally to 98-99 million tonnes, according to the Ministry ofConstruction.

This would include domesticconsumption of 70 million tonnes and exports of 28-29 million tonnes, it said.

Demand grew by 19 percent last year to 96.7 million tonnes, with exportsaccounting for 31.6 million tonnes after rising 55 percent.

Export prices too shot up last year to 44 USD per tonne from 38-38.5 USD at theend of 2017.

Export of clinker (the main raw material to make cement) was higher than thatof cement since many large cement companies abroad lacked raw materials.

China’s shutting down of polluting cement plants and forcing some others to cutproduction had created an opportunity for Vietnamese firms to increase exports.

Last year, Vietnam shipped 9.8 million tonnes of cement and clinker to China,accounting for 31 percent of its total exports.

The ministry said two cement production lines are scheduled to go on streamthis year, increasing the country’s output of 101.74 million tonnes.

Nguyen Quang Cung, Chairman of the Vietnam Cement Association, said cementexports are expected to remain positive this year.

The main export markets in 2019 would be the Philippines, Bangladesh, China,Taiwan (China), and Peru, he said.

China would continue with its policy of shutting down polluting plants,reducing supply, and prices were higher there than in many other markets, thusoffering Vietnam a good opportunity to boost exports to it, he said.

But he and experts have warned there would be challenges facing Vietnamesecement exporters this year.

For instance, the Philippines has decided to impose provisional safeguardmeasures on cement imported from various countries, including Vietnam, toprotect the local industry, which is being hurt by rising imports.

The provisional safeguard measures will be in the form of a cash bond of 210pesos (4 USD) per tonne for a period of 200 days.

Besides, its production capacity has increased, and so its cement imports woulddrop in future, experts said.

Cung said Vietnamese cement enterprises should keep a close eye on Chinese andglobal market developments.-VNS/VNA