After a decrease in cement demand recorded in the first ten days of April, a trend in demand recovery has emerged, according to the Union of Cement Manufacturers ‘Soyuzcement’. The market is experiencing the negative effects of the coronavirus pandemic, but government support measures should become positive factors. According to the results of 2020, the reduction in cement demand may reach 10 %, according to Soyuzcement’s recently published forecast.
The volume of cement production in Jan-Mar 2020 increased by 6 % YoY, up to 9.8 million tons. However, in April, instead of the planned market growth, the COVID-19 pandemic caused a contraction of production and distribution volumes.
Cement dispatches by road and railway in April 2020 fell 16 % YoY. In 4M 2020, shipments decreased by 1.6 % YoY.
According to Soyuzcement, support measures announced by the Russian government are positive factors for the industry. Suspended construction projects are resuming, measures are being taken across the country to resume the work of enterprises, and major banks are lowering mortgage rates.
In early April, Soyuzcement predicted a 2 % growth in cement consumption in Russia in 2020. Cement consumption in 2019 grew 8 % YoY and amounted to 57.8 million tons.
