Total cement consumption in the domestic market in 2022 will reach 62.68 million tons, approximately the level of 2021, consumption forecast in 2023 is below 65.5 million tons.

According to statistics from the Cement Industry Report 2022, in December 2022, the entire cement industry produced 6.39 million tons, a slight increase compared to November, domestic consumption in December increased by 3% compared to the previous month. was estimated at 5.41 million tons, but still down 12% compared to the same period in 2021.

Total cement consumption in the domestic market in 2022 will reach 62.68 million tons, equivalent to and equal to 99.66% compared to 2021.

Exports of cement and clinker in the past year recorded a very strong decline compared to last year's performance. Although in December, the export situation of cement and clinker in traditional markets such as Taiwan, Bangladesh, Malaysia... has improved significantly, but cannot offset the decrease of many previous months.

Particularly in the Chinese market, there was still a sharp decrease because the country still maintained the Zero Covid policy and the Philippines market decreased due to the problem of imposing defensive taxes on some enterprises importing from Vietnam.

As a result, the total export volume of cement and clinker only reached 30.65 million tons, down 33% compared to the same period in 2021. In which, cement exports reached 15.68 million tons, equaling 93% compared to the same period last year. In 2021, clinker exports in 2022 will reach 14.97 million tons, only 80% of that in 2021.

The total value of foreign currency earned from the export of cement and clinker in 2022 reached 1.36 billion USD, down 398 million USD compared to 2021.

Thus, the total amount of cement and clinker consumed in 2022 is only 93.33 million tons, much lower than 108 million tons of last year.

In 2023, difficulties continue to surround the cement industry, production and consumption cannot be brighter because input costs continue to increase (coal prices, shells, wages, and possibly electricity prices will be adjusted. ...), while domestic consumption is still gloomy, due to slow recovery of civil construction; Disbursement of public investment is still slow, the real estate market is forecasted to remain quiet because the State continues to tighten the issuance of bonds and real estate credits.

The export channel is not available because cement and clinker importers continue to implement many protectionist policies for domestic cement production, technical barriers to trade (in which the Philippines is subject to anti-dumping duties on imports). cement, China blocked the seaport due to maintaining the Zero Covid policy, which is expected to end in the first quarter of 2023); In addition, from January 1, 2023, Vietnam imposed an export tax on clinker from 5% to 10% (according to Decree No. 101/2021/ND-CP dated November 15, 2021 of the Government).

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In addition, there are difficulties from within the industry when the supply of cement exceeds the demand (in 2023, there will continue to be a number of new cement production lines put into operation such as Line 4 - Long Son Cement , Line 3 - Xuan Thanh Cement, Ocean Cement, Long Thanh Cement brought cement supply to about 120.7 million tons.

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It is forecasted that the demand for domestic cement consumption is only at 64 - 65.5 million tons, leading to increasingly fierce competition in the context of cement production units facing pressure to consume products. In production, many units have to stop kilns/reduce kiln productivity.