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Cement producers urged to seek export outlets
The Ministry of Construction has asked cement producers nationwide to seek export markets as their combined output is forecast to be sufficient for the local demand in 2009 and even 5-7 million tonnes higher than the demand in the following years.
In another move, the ministry worked out a number of measures to stimulate the consumption of the product in the domestic market, including building and upgrading roads, especially expressways, and stepping up production of unbaked construction materials.
It is estimated that the country’s total cement output will reach between 45-46 million tonnes next year when 18 new plants, with a combined capacity of almost 20.5 million tonnes, become operational.
The year 2009 is expected to mark the first time that local cement producers ensure a sufficient supply for the domestic needs, bringing an end to the supply-demand imbalance.
However, the Ministry of Construction has warned of a possible cement shortage in some southern areas as most of the plants are located in the north while the demand is usually higher in the south.
Statistics collected over the past five years indicate the southern localities have consumed 38-40 percent of the nation’s total cement output.
To deal with this issue, the ministry requested northern cement plants to map out plans to supply clinker for southern companies in order to limit the import of the material from regional countries. It also encouraged the supply of cement to the southern market to help stabilise prices
In addition, the ministry proposed the government adjust electricity and coal prices for the cement industry and permit it to set up a fund to support export activities while seeking new markets.
vna
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