Russia: demand set to fall by up to 12% in 2016

Russia: demand set to fall by up to 12% in 2016
30 June 2016

Demand for cement in Russia may drop 10-12 per cent in 2016, according to a representative of Moscow-based Eurocement Group.

"As concerns the cement demand forecast in Russia, we assume that the decline may remain in the same range as in 2015: in the vicinity of 10-12 per cent for 2016," the representative told the Interfax news agency.

"Eurocement Group plans to sell about 20Mt of cement in Russia and approximately 3.5Mt on other markets, in Uzbekistan and Ukraine," the representative said.

The Union of Cement Producers (Soyuzcement) forecast previously that cement consumption in Russia would decline 10 per cent to 57Mt in 2016. Cement consumption throughout the Eurasian Economic Union (EAEU) is forecast to total 71Mt this year, 8 per cent less than in 2015.

The Russian market consumed about 13.6Mt cement in January-April 2016, 16 per cent less year-on-year. The total for January-May is expected to amount to 19.2Mt, 14 per cent less, according to Soyuzcement.

Russian produced 13.6Mt of cement in 4M 2016, down 16 per cent YoY. Cement imports amounted to just 0.43Mt and exports 0.23Mt.

Overall, cement production capacity is recorded at 108Mta in 2016.

Published under Cement News