Vietnam increases exports of cement because it has a surplus, helping to support trades in dry bulk
The global seaborne dry bulk trade is projected to grow by 2.6% in tonnes, and by 3.3% in tonne miles, in 2018
VIETNAM is expected to export higher volumes of cement this year, because it produces more than its domestic market needs, according to Banchero Costa.
Domestic demand has not been keeping pace with output, and the Vietnam Cement Association is expecting a glut of 25m to 36m tonnes per year by 2020.
The country produced 78m tonnes in 2017, Bancosta research said in a note, which compares with 60m tonnes in 2012.
Vietnamese exports have been growing to countries in Asia including Bangladesh, China and the Philippines, according to Bancosta. It is estimated to account for 31%, 29% and 19% respectively, of Vietnam’s current cement and clinker shipment.
According to Global Cement, Vietnam’s cement exports in the period from January to July are estimated at 17.8m tonnes, an increase of 55% year on year, and near to the country’s target of 18m to 19m tonnes for the full year, Bancosta said.
Exports of cement in July 2018 alone were estimated at 2.1m tonnes, an increase of 43% year on year, it added.
Meanwhile, the global seaborne dry bulk trade is projected to grow by 2.6% in tonnes in 2018, and by 3.3% in tonne miles, with Asian imports of Atlantic coal, grain and several minor bulk commodities helping to increase the average haul of dry bulk trade, according to Clarksons.
This year the cement trade is expected to grow by 4% to 109.6m tonnes, the latest dry bulk trade monitor from Clarksons shows.
Other minor bulk strength can be seen in bauxite, which is expected to rise 12% to 108.8m tonnes, and nickel ore, which is also projected to increase by 12% to 48.8m, according to Clarksons.
The Baltic Dry Index closed at 1,773 points on Friday compared with 993 points at the same time last year.