Vinacomin Proposed to Suspend Coal Price Hikes
The Vietnam Cement Association March 25 proposed the prime minister to instruct Vietnam Coal & Mineral Group (Vinacomin) to suspend the second coal price hike for the cement industry at the current time.
According to the association, Vinacomin March 25 asked for the second coal price rise while it just raised the prices by 70 per cent against 2007 for cement production in January 2008.
The petition the association recently sent to the prime minister said that in the current context of galloping inflation, all the local industries do face rising production costs and they must be side by side with the government to share difficulties and seek solutions.
The association said the first price rise by Vinacomin in January 2008 has pushed up production costs of one ton of cement by VND30,000 and the new price hike would increase the cost by VND40,000-50,000/ton.
On the same day, Vinacomin in its official document proposed Vietnam Cement Corporation and other cement companies to sit together for discussion on new coal prices.
Accordingly, coal for cement production such as coal dust 4A.HC will increase to VND1.150 million/ton and 4B.HC VND1.1 million/ton.
At the working session with the State Bank of Vietnam March 15, the prime minister confirmed the government’s top priority now is to curb inflation and to stabilize macro-economy.
Earlier, Vinacomin announced the coal price adjustment roadmap which said the first rise would be in January 2008 and the second July 1 2008.
According to the cement association, on the one hand cement makers have to pledge not to raise cement prices under the instruction of the government and the Ministry of Finance, on the other hand, they shoulder the burden from coal price rise. (Labor)
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