Our next cement conference will take place in Istanbul. Visit www.CementTrade.net!
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Our Metals invites you to attend 2nd international "Cement, Concrete and Constructions Materials - Expectations for 2009" conference,
which will examine the issues of demand and supply balance in the cement market including forecasting, analysis of cement prices, implementation of investment projects, the characteristics of the Russian cement producing capacities and the current state of product range.
The conference will take place in Moscow Government Building in Moscow, Russia on 8th December 2008.
Nowadays situation in Russian market is not easy. Cement industry as well as others undergoes serious disturbance such as lack of financing, absence of credits, increase of accounts receivable, and fall of demand. This is crisis reality. In the beginning of 2005 cement price was 1440 rubles per ton, in 2007 prices rose up to more than 5000 rubles, and now price is 2900 rubles with the trend to decrease. Deficit of cement was replaced by its surplus and the warehouses are overloaded. In construction season of 2008 cement sales met big difficulties which caused great losses among suppliers. Russian manufacturers decreased prices but it did not help. In September cement production volumes decreased by 15.4% comparing to September 2007 and by 6.5% comparing to August of 2008. Some big producers have to cut volumes by 20-30% and more.
Moscow stock exchange, which by the beginning of 2008 has sold about 1% of total volume of cement in Russia, continues to show cement prices decrease in Russia.
However, cement trade at the exchange has almost stopped.
During the first decade of October only 14 thousand tons were sold.
To compare: during October 2007 the stock exchange sold 604 thousand tons of cement.
At the same time many foreign companies invest in Russian cement manufacturing.
For example, Swiss Holcim invests over 300 mln Euro in Garadagh Cement to increase its production volumes to 1.7 mln tons by 2011.
In Novosibirsk region, development of “Siberia-development” cement factory building project is planned.
Moreover, producers believe that prices were drawn down by import.
As per the market players’ estimations in the first half year of 2008, 4.6 million tons of cement were imported to Russia which was 19 times more than in the same period of the last year.
According to the results of 2007 about 40% of the market was occupied by Eurocement, but today it occupies only 24% of the market (as per its own estimations).
In 2007 Eurocement’s volumes were not enough to satisfy the whole market and prices were set solely, better to say, they were lifted dishonestly.
Cancellation of import taxes could stop prices increase and to overcome the deficit.
Today in the falling market, import has decreased many times comparing to the first half year of 2007.
In 2009, decrease of import is expected to double in comparison with 2008 level.
In the past the problems of cement deficit were solved by the means of import, we now try to overcome the crisis with the help of domestic and foreign investments.
Manufacturers demand the return of import tax. Is it worth doing so? Is there a risk that we will face cement deficit again when the crisis diminishes and the capacities of Russian factories remain at the same level unless worse?
In the falling market the projects of building new factories and repairing old ones are almost tied up.
Should we continue to import or to support domestic producers?
Can our manufacturers again turn their backs to traders?
When to expect State investments into construction?
Moscow Government still buys real estate and makes arrangements for recovery of normal work of construction sites.
Will it become a real help for the building of new objects?
Will the market be able to overcome the crisis independently?
What should we expect in 2009?
Our next cement conference will take place in Istanbul. Visit www.CementTrade.net!
Who should attend:
Cement producers
Cement suppliers
The representatives of state authorities and industry associations
International cement companies
Traders and distributors
Building and construction companies
Industry analysts and researchers
Consultants and investment banks
Do not miss a unique opportunity to gain direct business contacts with over 250 cement buyers and suppliers from Russia & CIS, Europe and Middle East.
The conference will be simultaneously translated in English-Russian.
Register today!
