Soyuzcement warns of rising cement costs in 2024

Russia’s union of cement producers, Soyuzcement, has written to the country’s government warning of a 17-30 per cent YoY rise in cement costs in 2024 on the back of higher logistics and energy costs, higher interest rates, and rising salaries. According to the union, these increasing costs come on top of the 23-30 per cent hike in production costs already seen in 2023, reports bne IntelliNews. RosStat data supports Soyuzcement’s claims, stating that the average cost of purchasing cement in September 2023 was RUB7900/t (US$85.80), up 14.7 per cent YoY.

Soyuzcement also attributes the rising cost of cement to the marked deviation of the ruble, which resulted in a 20 per cent increase in the cost of some imported equipment, along with logistical challenges due to a shortage of drivers and low rates of fleet renewal by transportation carriers. Staff shortages have reportedly led to 15 per cent salary increases.