Cement Logic of Economy

In July of this year the volume of cement production, an indicator of the state of the construction business, decreased. For the first time since 2013 index of production volume of these products became negative.

According to the State Statistics Committee, in January-July 1 million 622.6 thousand tons of cement was produced, which is 2.4% less than in the same period in 2014.

None of cement enterprises in Azerbaijan discloses its own current output. The largest cement plants are Holcim (Azerbaijan) (capacity - 1.7 million tons per year), LLC Norm (2 million tons) and LLC Qazakh Cement Zavodu (1 million tons).

Because of the distribution in the market, the prices of cement in Azerbaijan for a long time remained virtually unchanged and were highest in the region. In February this year, as a result of the devaluation of the national currency, the price of cement increased by an average of 8.4%. The process continued in March (0.9%) in 2015. In subsequent months, prices began to stabilize.

According to the State Customs Committee, in the first seven months of this year Azerbaijan imported from abroad cement at a total declared value of $ 21.8 million. That was $ 52.7 million or 70.7% less than in the same period last year.

Last year, local cement production reached its peak - 2 million 979 thousand tons, which is 40.5% more than in 2013. Overproduction was 3.6%. In the enterprises' warehouses (approximately 15 subjects) there were 110.7 thousand tons of ready-to-sales in early 2015.

According to expert estimates, the annual consumption of cement in Azerbaijan is not less than 3 million tons. If public investment in the economy is reduced, then the amount will decrease by about 15% in 2016. -08B-

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