Russian market expands 8% in 2019

Cement consumption in Russia increased eight per cent to 57.8Mt in 2019, according to the country’s cement association, Soyuzcement.

Exports by Russian producers expanded by 9.6 per cent YoY to 1.1Mt in 2019 on the back of rising volumes to export markets, which include Azerbaijan, the Baltic states, Belarus and Kazakhstan. However, according to industry sources the unfavourable exchange rate of the rouble is affecting the competitiveness of Russian producers when exporting cement and may affect export volumes going forward.

Meanwhile, importers saw their volumes contract by 6.4 per cent to 1.4Mt.

Output from Russian cement plants in the 11M19 increased by 7.6 per cent YoY to 54.5Mt. The majority of leading producers reported higher output with Eurocement, the country’s largest cement company posted a 14.5 per cent YoY expansion of production.

During the year, the industry underwent a process of consolidation. As part of this Sibtsem JSC, one of the leading local players, received a permission from the Russian anti-trust regulators for the acquisition of its local competitors ,Angarskcement JSC and Iskitimcement JSC. Earlier, the South Ural Mining and Processing Company (YuUGPK) acquired Gornozavodskcement, which is one of the largest cement producers in the Russian Urals and Siberian regions and based in the Perm Territory.

In 2020 the country’s cement market is expected to expand by two per cent YoY with a further increase in exports and fall in imports. Several large-scale state projects, including “Housing and the urban environment” and “Safe and high-quality roads” are forecast to drive cement demand. Moreover, a large state programme to renovate housing is also expected to support consumption.