Russia's cement market cools but exports strong

Russia's cement market cools but exports strong
19 September 2019

Cement production in Russia increased by 8.9 per cent YoY to 33Mt in the first seven months of 2019, according to Soyuzcement, the country’s cement association.

The demand for cement in Russia in the January-July 2019 period was at the highest level for several years, added the association. However, since July demand has significantly fallen, despite the domestic construction sector experiencing its high season. Soyuzcement analysts anticipate consumption to continue its downward trend in the fourth quarter but predict YoY growth of six per cent by the end of the year.

The rate of development of key infrastructure projects is expected to be the key driver in medium-term cement demand. This includes a rise in concrete road building activity as well as the implementation of the national “Housing and Urban Environment” programme.

Domestic cement output was supplemented by 839,100t of imports in the first seven months of 2019, representing a 5.2 per cent drop when compared with the year-ago period.

Exports advanced 23.8 per cent YoY between January and July to 724,700t. Export growth was particularly strong in deliveries to Belarus, Azerbaijan, Finland and Ukraine. Supplies to Abkhazia and Kazakhstan fell by 59 and 17 per cent, respectively. While considerable potential for export growth exists, according to analysts, the global financial market environment will be a key factor. The current weakness of local currencies versus the ruble significantly limits the potential of Russian exports.

Published under Cement News