openPR Logo
Press release

Cement markets in CIS countries continue to grow

09-22-2011 07:44 AM CET | Business, Economy, Finances, Banking & Insurance

Press release from: PMR Ltd

With an 11% growth in cement consumption in 2010 and a further 12% growth expected for 2011, cement producers in the countries of the former Soviet Union have been able to forget about the dramatic events of 2009, when there was a reduction of more than 20% in the consumption of cement in the region. The countries’ vast infrastructure development and housing needs are to be addressed by the governments in the near future, which should boost per capita cement consumption in most of the CIS countries. In anticipation of growing demand, local producers are busy raising their cement production capacities and also investing in the sustainability of their plants.

Russia, Ukraine, Kazakhstan, Belarus, Uzbekistan, Azerbaijan, Moldova, Turkmenistan, Georgia and Armenia are former Soviet Union countries sharing numerous links, with a total population of more than 260 million and a total area of 22 million square kilometres. In both 2006 and 2007, the annual increase in the monetary value of cement consumed in these countries was close to 80%, reflecting a steep rise in cement prices and an ongoing construction boom in these countries. In 2008, the increase in the combined value of the cement markets in the region slowed to 6%, and this was followed by a steep, almost 50%, contraction in the CIS cement market, a result of tumbling prices and falling demand.
In terms of volume, the combined consumption of cement in the ten countries grew at an AAGR of 14% between 2003 and 2007 and reached a peak of 100 million tonnes in 2007. This was followed by a slight, less than 1%, reduction in 2008. During the following year, the majority of cement producers in the region witnessed a dramatic reduction in demand for their produce, with the steepest declines seen in Russia and Ukraine, the two largest CIS cement markets, as well as Moldova. On the other hand, countries such as Uzbekistan and Turkmenistan proved resilient to the global downturn and saw their cement consumption grow by 25% or more that year. Overall, total consumption of cement in the ten former Soviet Union countries has fallen by almost a quarter. Demand in the region was satisfied mostly by produce from local plants, along with additional supplies from countries such as Turkey and China.
The cement markets in the region recovered in 2010, with a nearly 11% year-on-year increase in combined consumption for the whole year. This will be followed by an even more substantial increase of 12% in 2011 and an 8.5% growth in 2012, which will be prompted by the numerous projects carried out as part of the preparation for key events to be held in the region, such as the 2014 Sochi Winter Olympics, as well as the implementation of ambitious road infrastructure and housing development programmes rolled out by the governments, especially in the countries rich in natural resources such as Russia and Kazakhstan. As a result, combined cement consumption in the region should exceed 100 million tonnes as soon as next year.

Until 2008, cement production in the ten countries in question grew by more than 10% each year, as cement plants strove to meet growing demand. As a result, output in 2007 exceeded the figure observed four years before by more than 50%. In 2008, however, the 90 cement plants operating in the region reduced production levels to just over 90 million tonnes – with Russia accounting for 60% of total output – in order to adjust to the more modest demand for, and increased imports of, cement to the region. This was followed by an 18% reduction to fewer than 76 million tonnes in 2009, as construction activity declined substantially across the CIS. The growth in cement production was resumed, at 10%, in 2010 and in the current year production will keep pace with cement consumption and grow by 12%.
In anticipation of increased demand in the future, cement producers have – sometimes with government support – embarked upon numerous cement production capacity upgrade projects. By and large, the goal is to replace imports of cement with domestic production, and possibly increase export volumes at the same time. This strategy, applied simultaneously in several countries, could, however, lead to cement overcapacity in the CIS region in the next few years.

This press release is based on information contained in the latest PMR report entitled “Cement market in the CIS countries 2011 – Development forecasts for 2011-2014” http://www.pmrpublications.com/online_shop/Cement-market-CIS-countries-2011.shtml

For more information on the report please contact:
Marketing Department:
tel. /48/ 12 618 90 00
e-mail: marketing@pmrcorporate.com

PMR (www.pmrcorporate.com) is a British-American company providing market information, advice and services to international businesses interested in Central and Eastern European countries as well as other emerging markets. PMR's key areas of operation include business publications (through PMR Publications), consultancy (through PMR Consulting) and market research (through PMR Research). Being present on the market since 1995, employing highly skilled staff, offering high international standards in projects and publications, providing one of most frequently visited and top-ranked websites, PMR is one of the largest companies of its type in the region.

Dekerta 24
30-703 Kraków

This release was published on openPR.

Permanent link to this press release:

Copy
Please set a link in the press area of your homepage to this press release on openPR. openPR disclaims liability for any content contained in this release.

You can edit or delete your press release Cement markets in CIS countries continue to grow here

News-ID: 192757 • Views:

More Releases from PMR Ltd

60% of Polish SMEs use IT services
60% of Polish SMEs use IT services
Approx. 60% of small and medium sized enterprises use IT services in Poland. Some 30% of SMEs declare to employ people responsible for IT. The number of portable computers used by SMEs has been growing. On average, there are five such computers per one SME. The proportion of companies which use EU funds to finance ICT development has gone down over the last two years. Use of IT services According to the
Ukrainian IT industry to keep on growing in 2012-2013
Ukrainian IT industry to keep on growing in 2012-2013
In the last two years Ukrainian IT market has been recovering after a sharp decline experienced in 2009. The market will continue to record double digit growth rates in 2012-2013. The macroeconomic and political situation will remain of crucial importance in the country. Current situation and key trends According to the latest report “IT market in Ukraine 2012. Development forecasts for 2012-2017” published by PMR, a market research company, the total
Retail grocery market to provide €117bn in 2014 in the CE region
Retail grocery market to provide €117bn in 2014 in the CE region
PMR estimates that in 2011 the grocery market in six Central European (CE) countries was worth nearly €107bn, 2.8% more than the previous year when expressed in local currencies. The increase was generated foremost by the discount stores and supermarket segments, and was driven by the skyrocketing prices of foodstuffs. Schwarz Group, which operates the Lidl and Kaufland chains, is a leading grocery player in the CE region – as
Hungarian construction market to recover in 2013-2014
After a poor 2009-2012 for the Hungarian construction industry, from 2013 a visible market recovery is expected. The growth in 2013-2014 will result from the intense execution of EU co-financed infrastructure investments as well as some revival in building construction, particularly in non-residential buildings. According to the research company PMR’s latest report, entitled “Construction sector in Hungary 2012 – Development forecasts for 2012-2014”, weak macroeconomic environment, falling investment demand and poor

All 5 Releases


More Releases for CIS

Utilities’ Customer Information System (CIS) Software Market Size 2022: Oracle, …
Utilities’ Customer Information System (CIS) Software Market report is extremely valuable for mapping the strategies related to production, product launches, costing, inventory, purchasing, and marketing. This analysis provides an examination of various market segments that are relied upon to observe the fastest development amid the estimated forecast frame. All the data and information are very helpful to stay ahead of the competition when implemented in a correct manner. With the
Continuous Improvement Software (CIS) Market Is Likely to Experience a Tremendou …
Region wise manufactures, revenue projections and production rate are covered in this Continuous Improvement Software (CIS) market analysis report. It emphasizes more on leading assets to track the regional growth including social, economic and technological place of region. Market analysts take opinions from experts to understand complete market condition efficiently. This Continuous Improvement Software (CIS) market report further assists to establish a profound process for leveraging business leads and make
Utilities’ Customer Information System (CIS) Software Market Is Booming Worldw …
Utilities’ Customer Information System (CIS) Software Market: The extensive research on Utilities’ Customer Information System (CIS) Software Market, by Qurate Research is a clear representation on all the essential factors that are expected to drive the market considerably. Thorough study on Utilities’ Customer Information System (CIS) Software Market helps the buyers of the report, customers, the stakeholders, business owners, and stockholders to understand the market in detail. The updated research
Continuous Improvement Software (CIS) Market Pegged for Robust Expansion by 2027 …
This Continuous Improvement Software (CIS) market analysis is a potential resource for key players, stakeholders, and participants to know thoroughly about the industry growth factors. This market report further focuses on individual and industry growth developments relating to their contribution to the entire market. It also depicts the whole market scenario. It further proceeds with providing information on competitive developments such as market expansion, new product launches, and acquisitions in
CIS Chip Market Overview Till 2018-2023
Future Market Reports on Global CIS Chip 2018 Research Report presents a professional and complete analysis of Global CIS Chip Market on the current market situation. The Global CIS Chip Market 2018 report includes CIS Chip market Revenue, market Share, CIS Chip industry volume, market Trends, Growth aspects. It analyses the important factors of the CIS Chip market based on present industry situations, CIS Chip market demands, business strategies utilized
CEE & CIS Downstream Project Management Conference,
Successful implementation of complex revamp and construction projects without budget overruns and schedule slippage is the dream of any refinery manager. VPs and Project Managers of companies such as LUKOIL, GAZPROM NEFT, MOL, SLOVNAFT, SOCAR and KAZMUNAYGAZ will take part in the 4th CEE & CIS Downstream Project Management Conference, 2- 3 November 2017 in Vienna, to exchange best practices in the project execution and capital efficiency. The conference includes • A technical