Cement Production in Russia Grew by 8.3% in 2019

According to the results of the first 10 months of 2019, cement production in Russia increased by 8.3% (to 50.7 million tons) compared to the ten-month period of 2018. At the same time, Soyouzcement published a survey showing that cement consumption increased by one percent. A new industry survey was published on Tuesday, November 3.

Analysts at Soyuzcement predict Russian plants will produce a total of 58 million tons of cement in 2019. The leading growth index is shown by enterprises of the North Caucasus Federal District, which showed a 22% growth this year. The Central Federal District gained 15%, Far East gained 14%, and Ural region gained 11% in production growth.

Soyuzcement sticks to the forecast for a second review in a row. In September, analysts emphasized that 2019 will be the first year of growth in cement consumption in Russia, starting in 2014. The production growth (compared to 2018) was 9.1%, and consumption growth — at 9% growth. The authors of the October Soyuzcement review expect the annual cement consumption level to hit the mark of around 58 million tons. This will provide about 8% increase over last year. Worst case scenario, the market is expected to grow by 6%.

A positive factor for the market in 2019 may be the transition to the active stage of the implementation of federal national projects, including the Housing and Urban Environment project.