Forum

Why do cement exports from Russia grow while there’s shortage in domestic market?

Cement production and consumption in Russia in the 1st half of 2011 kept growing and reached 6.1 mio tons in June 2011. However, cement consumption also increased and has exceeded the production volume by 69 thousand tons. In July the shortage grew by 57%—to 108 thousand tons. The shortage is covered by import but export is growing at the same time.

Why do Russian construction companies import cement whereas Russian cement manufacturers export their products? — Low competitiveness? Low prices in domestic market at high prices in export markets? Buyers’ low freight costs? Railway cars shortage? What to expect in future: import increase or drop in the 2nd half-year of 2011? Further increase of cement prices or their stagnation in autumn? Will the construction companies manage to keep current recovery rate?

The event participants will gain an opportunity to network with Russian cement market players, offer equipment and technologies directly to cement manufacturers, find buyers and end users, and learn about he latest changes in Russian cement market.

Russian Cement Industry Upgrade

One of key goals of the economy, defined by the President of Russia, is the reduction of energy consumption 40% by 2020.

Cement industry, being a big consumer of energy can substantially decrease the intensity of energy use.

Today Russian cement industry has potential of growth by means of introduction of new up-to-date and upgrade of existing production facilities.

The problem of cement manufacturers in Russia is low energy performance and, therefore, high production cost. The volume of cement produced by dry process in the total volume of cement increases slowly, which points at extremely low level of substitution of obsolete production facilities with new ones.

The share of energy resources in cement production cost in Russia exceeded average level of Russian and global industry.

According to some assumptions fuel and power resources specific consumption by Russian cement industry can be driven to global level by 2020:

The strategic goal of Russian cement industry is technical upgrade and modernization of existing as well as introduction of new energy and resources saving and environmentally safe factories.

According to experts energy consumption in cement industry can be reduced by 20–30% and even by 40% at particular factories. How to do that and at what expense?

The experience of cement producers from other countries is very important for the representatives of Russian enterprises.

On the agenda:

Among the participants (invited):

Organized by: Rucem, Rusmet
Rucem Rusmet +7 495 9892674 +7 495 9800608 cement@rusmet.com

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