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Cement Trap

11/08/2008

During the first half of 2008, Russia imported 4.747 billion tons of cement, told the deputy head of the management control of the Federal Antimonopoly Service Industry Denis Davydov, with reference to the Federal Customs Service (FCS). This is almost 20 times more than during the same period last year (241 500 tonnes) and almost twice that for the whole year 2007 (2.44 million tonnes). The proportion of imported cement in the Russian market has exceeded 15% (in the first half of consumers have received 31.3 million tons).
Increase in imports contributed to the abolition of January 1, 5%-term import duty on cement for a period of nine months, certain producers of cement. «The role played not so much the abolition of tariffs, but the disappearance of the administrative barriers», - said Davidov. An additional factor in the increase of import prices were high, I'm sure the chief of marketing department «Bazeltsementa» Denis Usoltsev. Another 3.5 years ago, raw material cost 1150 rubles. 1 t. But after buying «Eurocement Group» Filaret Galcheva cement assets «INTECH» in May 2005, the price of cement increased almost 2 times up to 2000 rubles. for 1 ton maximum in 4777 rubles. for 1 ton of them reached this spring. However, imported cement is much cheaper. Spring Turkish producers were selling it for 3500 rubles. for 1 ton, said Davydov.
Growth of imports has led to lower prices at 19.4% - up to 3865 rubles. for 1 ton (see chart on page A1). In addition, according to Rosstat, the production of cement in Russia in the first half declined by 2.6%. A leader of the industry - «Eurocement Group» was a decline and even a quarter. President «Eurocement Group» Mikhail Skorokhod sure that importers are dumping also affects the technological backwardness of Russian enterprises: «Russian producers is difficult to compete».
Deputy Director of the Department of Trade Negotiations Ministry Andrei Kushnirenko said that officials may re-introduce import duties on cement. But Russian companies have to be to justify the proposal. Davydov to this: «In the face of the dictates of domestic manufacturers did not abolish the fee, it would be incorrect». Besides, he pointed out that the customs value of imported cement is growing: last year, its average price was $ 109, while in the same time - $ 122 (data FCS).
Skorohod also worries that in a sweep of Russian producers import most of the implementation of investment projects would be threatened. According to him, the investment attractiveness of the industry falls: recoupment of plants grow to 12-14 years, although «Eurocement» counted for 8-10 years. Russian producers still do not have to worry, pariruet Vice President AG Capital Vladimir Guz. He pointed out that the profitability of cement companies more than 100%.
Source: /out.php? Http://www.vedomosti. ru

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