¹ 1 (2008)
The majority of cement plants located in the South, as well as in all other regions of Russia, is not
Market insiders hope that implementation of all those investments together with the modernization of already existing manufacturing in the South of the Russian Federation, will help to avoid the cement deficit during the active phase of a construction of Olympic facilities and supporting infrastructures. Besides, the lack of cement can be compensated by the supplies from Turkey, for example. Lomakin Ilya, the Chief Executive Officer of Dicovery Research Group, notes that the amount of imported cement constitutes only 2% of overall cement production in Russia (61 million tons in 2007), but this number is expected to increase in the South Federal Region.
«The demand for metal products should have been increased by 5063%, or from 40 million tons per year to 6065 million tons, by the year
But with the introduction of new manufacturing powers that number can go down. The investment activity of metal products producers and suppliers is quite obvious in the south of Russia. As it has been mentioned by «Ugmetalsnab»s
Brining together Demand and Supply
According to the Chairman of the Board of Directors of JSC «Glubokinsky Brick Factory» Lyashev Andrey, Russian producers of brick can meet the Sochi constructions demands. Glubokinsky Brick Factory is currently supplying lining bricks to Sochi and planning to participate in the Olympic constructions as well. This fall company is planning to introduce the production of multilayered wall application of reinforcement elements, which has been designed specifically for the regions with high seismic activity. «BaselCement», which has recently bought more then 50% of Alagirskiy minefield in Northern Osetia, is aiming to become the largest ballast stone supplier. «In 2008 the company plans to put into production not less then 3 ballast stone plants, and supply home market, as well as Sochi, with approximately 1 million tons of nonmetallic materials», said the president of the company Savenko Dimitry.
It is possible that some part of sand and ballast stone will be supplied to the Olympic locations by the neighboring countries.
The only question is how to agree on the price on all these building materials? Today, the price level has reached its historical maximum and is expected to keep growing. The demand from BRIC (Brazil, Russia, India and China) and the raw materials price growth will stimulate further price growth tern. Rising of brick cost is connected with the growing cost of energy: which is 2030% per year.
Market insiders and experts agree on one point it is possible to decrease the growing price rate on building materials by stabilizing the energy tariffs. Another way to put prices under control is to level the correlation of demand and supply. For instance, experts predict the prices stabilization in cement industry in 2011, after all planned upgrading being finished for the most factories, and new factories being opened.