Key Russian cement producer JSC Cemros is suspending productions at its subsidiary JSC Belgorod Cement for several months due to worsening market conditions.
"Cemros is suspending cement production at the Belgorod cement factory due to the worsening market situation, a fall in production margins and an increase in the proportion of cement imports on the Russian construction market [...] We plan to resume operations at the factory in several months' time," the company said in a statement.
During the stoppage the plant will carry out equipment repairs. Part of its staff will be deployed at other factories and the company will meet its social payments on time and in full.
The company said that cement demand in Russia and in the Central Federal District in particular had fallen significantly. "Cement consumption across Russia fell 8.6 per cent in the first half of 2025 and 10.5% in the second quarter. It decreased 11.8 per cent in the Central Federal District, where the Belgorod region is located, in June. In the Belgorod region itself, it fell 8.4 per cent in the second quarter,” it said. It expects that the decline will continue and will at least reach 13-15 per cent in 2025.
The high key rate, termination of preferential mortgage programmes and curtailment of construction projects were cited as main drivers for the downturn. "In these highly volatile conditions, developers are reducing the rates at which new accommodation is commissioned and suspending work on projects announced previously, leading to a drastic decrease in cement purchasing," the company said in its press release.
Imports are also putting pressure on the market. "According to experts' estimates, the total volume of cement imported by Russia in the first half of 2025 has grown YoY, and Belarus continued to make up the greatest proportion. Imports from Iran grew by a quarter. Total cement imports will reach around 4Mt in 2025, equivalent to the production capacity of two or three Russian factories with a thousand employees," Cemros added.
