Cement (Russian market)

Construction materials in Russia

Main Article: Construction Materials (Russian Market)

2023: Cement production in Russia increased by 3.6% to 63 million tons

In 2023, cement production in Russia increased by 3.6% compared to 2022 and reached 63 million tons. This is evidenced by the data of the Union of Cement Producers, which TAdviser got acquainted with in August 2024.

According to the report, cement consumption in Russia in 2023 increased by 5.4% and amounted to 65 million tons. This indicates a positive trend in the country's construction industry.

Significant growth was observed in cement imports. In 2023, 3.36 million tons of cement were imported into Russia, which is 52.9% more than in 2022. The main supplier countries were Belarus (69.2% of total imports), Iran (19.2%) and Kazakhstan (9%).

Cement exports from Russia also showed positive dynamics, increasing by 5.9% and reaching 1.01 million tons. The main export directions of Russian cement were Kazakhstan (55% of total exports) and Belarus (35.8%).

In the regional context, the largest increase in cement production in 2023 was observed in the Volga Federal District (+ 11% by 2022), the North Caucasus Federal District (+ 8%) and the Far Eastern Federal District (+ 8%).

The positive dynamics in the cement industry of Russia corresponds to the general trend in the countries of the Eurasian Economic Union (EAEU). According to the report, cement consumption in the EAEU in 2023 increased by 3.3% compared to 2022.

The increase in cement production and consumption in Russia is associated with the implementation of large infrastructure projects, housing construction programs and a general revival in the construction industry. Among the factors that can support the further growth of the industry, analysts highlight the implementation of the national project "Housing and Urban Environment," housing renovation programs, as well as an increase in the share of construction of cement concrete roads.^[1]

2022

Growth in cement production by 1.8% to 60.8 million tons

By the end of 2022, cement production in Russia reached 60.8 million tons, which is 1.1 million tons, or 1.8%, more than a year ago. Such data were released in April 2023.

The report notes that in 2022 the capacities of new enterprises of the dry and combined methods were mastered. The share of cement produced by these methods amounted to 58.4% - 1.4 times more than the share of cement produced by the traditional wet method for Russia, but was 0.26 percentage points less than in 2021. In 2022, the share of cement produced by the dry method in its total output was 0.7 percentage points lower than in 2021.

Almost 70% of cement imports are supplied to Russia from Belarus. The main consumer of exported Russian cement (more than 70%) is Kazakhstan, indicated in the materials of the association.

Soyuzcement noted an increase in production costs: gas, electricity, coal rose in price over the year, transportation tariffs increased. Director of Corporate Relations Cementum (formerly Holcim) Vitaly Bogachenko estimated a cost increase of 17%. Soyuzcement believes that the state programs related to the construction will be able to have a positive impact on the situation: renovation of housing stock, integrated development of territories, construction of cement concrete roads, the national project "Housing and Urban Environment."

The need for cement itself is decreasing, said Mikhail Burmistrov, general director of Infoline Analytics. Developers, manufacturers of concrete and concrete products are reducing the use of cement, alternative technologies are developing, including the use of steel frames and wooden housing construction, the expert points out. He added that the share of individual housing construction, where the need for cement is significantly lower, is growing, and the commissioning of multi-apartment housing in 2022 has stagnated.^[2]

Cement exports from Russia in the first half of the year decreased by 19%, to 475.6 thousand tons

Shipments fell both to Europe and in the direction of the main buyers - Kazakhstan and Belarus. The reasons are difficulties with logistics and the strengthening of the ruble.

2021: Cement exports from Russia grew by 21.6% over 5 years

In 2021, the export of Russian cement amounted to 1.35 million tons, which is 21.6% more than in 2017, when the supply of this construction material abroad was 1.11 million tons. Such data were provided by BusinesStat analysts in mid-March 2022.

According to the study, in 2017-2021, Russian cement was shipped to 48 countries. Kazakhstan turned out to be the largest buyer - in 2021, 911.5 thousand tons, or 67.4% of total exports, were delivered to this republic. The volume of product supplies to Kazakhstan over five years increased by 215.4 thousand tons, or 30.9%.

In second place Belarus in terms of purchases of Russian cement is 304.7 thousand tons, or 22.5% of the total supply in 2021. The volume of exports of products to Belarus in 2017-2021. increased by 15.8%, or 41.6 thousand tons. At the same time, the most noticeable in the supply structure was the export of Portland cement, the researchers note.

According to them, the growth of exports of Russian cement in 2021 was facilitated by both the weakening of the ruble, which allowed exporters to reduce prices in dollars, receiving ruble profits, and the expansion of sales markets by dealers. In addition, cement manufacturers were able to significantly expand the geography of sales thanks to certification of products according to international standards.

In 2017-2021, cement exports from Russia increased by 21.6%

At the end of 2021, an increase in cement production is observed in all federal districts, with the exception of the North Caucasus. The highest growth rates of cement output were noted in the Far Eastern Federal District (+ 14.5% compared to the previous year) and the Siberian Federal District (+ 13.7%). It should also be noted an uneven change in the volume of cement output by region. Growth in production volumes in 2021 was registered in 28 out of 36 regions in which existing cement plants (or grinding terminals) are located^[3].

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