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Cement prices fall to 4.5 USD a bag
Cement prices have fallen sharply following Government measure to stabilise prices.
Cement prices last week were down compared to prices two weeks earlier. Cement from Ha Tien No1 was a about 72,000 VND per bag (4.5 USD) against the price of 88,000VND-90,000 VND per bag (5.5-5.625 USD) two weeks ago.
“Cement prices keep falling due to the improvement of supply and the reduction of demand during the coming rainy season,” said Dao Duc Toan, director of Dao Duc Toan cement distributor. The current stability in the cement market has seen 15 distributors with more than 3,000 stores cut down prices during fierce competition in the HCM City market.
The price fall follows a period of price hikes due to rising production costs. However, when cement producers were allowed by the Government to raiseprices, they were able to expand production capacity and then produce more competitively-prices cement. Cement companies closely control both wholesale and retail trade in the market to prevent prices rising over the recommended level.
Nguyen Hong Quan, Minister of Construction, affirmed that the scarcity of cement was temporary. Eleven cement plants are expected to be put into operation soon, bringing the national capacity to 37 million tonnes in 2008, and 17 additional cement plants with a total designed capacity of 19.4 million tonnes are set to start producing in 2009, boosting capacity further to an annual 56.2 million tonnes.
VNA
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