Petrified cement market grew by 10%

For the first two months of cement producers in Azerbaijan made a serious leap forward, production increased by 38.2%. Also do not lag behind importers who supply increased by 18%. These facts indicate the dynamics of the cement market, which can not be said about the price of this one of the main types of building material.

In 2013, appeared on the market two new producers that promise to put on the market of 3 million tons of cement per year. This means that this year the volume of potentially local cement production could rise to 5 million tons. Thus, according to the State Statistics Committee and the State Customs Committee, the need of the local market is about 3.3 million tons. If the Customs figures for imports of cement are false, as can be seen in many headings, it is likely that this year Azerbaijan could become an exporter of cement in large volumes. At least, the volume of imports may decline.

Market introduction of new brands (Accord Cement and Norm Cement) has not yet affected the retail prices. Manufacturers are working with construction companies and concrete plants for special pricelist - much lower than retail. Today the average cost of packaged 40-kg bag of cement in Azerbaijan is 6 manat (depending on the destination prices fluctuate within 5.7-6.3 manats per 1 bag). This is about 3-4 times more expensive than in neighboring Armenia, where production capacity is about 2.4 million tons per year. In Russia, a bag of cement costs about $ 4.

Steady prices at retail were formed in 2006 when retailers as a result of market manipulation increased the price per bag of cement to 10 manat. After the intervention of the Economic Development Ministry (today the Ministry of Economy and Industry), prices dropped to the existing. Regardless of seasonal and climatic conditions, production volume and import prices are kept at the same level. According to the chairman of the Association of Free Consumers Azerbaijan Eyyub Huseynov, there are manifestations of cartel agreement. "In this market can not be expected lower prices, and you can always expect them to only increase," he said.

In 2013, cement production in Azerbaijan amounted to 2 million 39.9 thousand tons, which is 3.8% more than in the previous year.

In 2013, the supplies of cement increased. If 2012 was imported 1 million 69 thousand tons of cement, last year the figure reached 1 284.4 thousand tons. It is noteworthy that last year the volume of supplies of cement in Azerbaijan in terms of weight increased by 20%, while the total declared value ($ 95 million) increased by only 10%. Last year, a ton of construction and hydraulic cement was declared in Azerbaijani customs for $ 74. And in 2012 the cement issued in customs for $ 81.6. Retail price of cement in Azerbaijan (about 145 $ / ton) is twice the customs rates.

Another important point is the shadow doubtful high import cement clinker, with output in 2012 (more than 1.1 million tons) even exceeded shipments of finished products. In 2013, it was purchased from abroad 1 million 295.8 thousand tons of clinker at a price of 44.6 $ / ton. Major supplier of raw cement is Iran - 1.2 million tons. But who is the end user? All the major manufacturers (Holcim-Azerbaycan, Norm, Gazakh Cement) have their cement kilns. There remain Nakhchivan cement plant, Azbentonit, Qaradag-I, Sumqayit-Sement, Qaradag-S and about 10 other small cement plants. According to the State Statistics Committee of Nakhchivan Autonomous Republic, in 2012 at the cement plant Gemiqaya Holding was produced 36.6 thousand tons of cement. In the Absheron region, where LLC Azbentonit of Garant Holding acts, 98.2 thousand tons of cement was produced in 2012. In LLC Azbentonit employing 543 people (100 people more than in Holcim (Azerbaycan), they do not disclose the capacity and performance, although it is known that it is the supplier of cement for the construction company ZQAN Construction (included in Garant Holding) and has a considerable share in the retail sales.

Misty is also the geography of supplies of cement to Azerbaijan. So, for example, from Georgia in 2013 was delivered to Azerbaijan 408.1 thousand tons of Portland cement in the total declared value of about $ 39 million, according to official sources in Armenia, Georgia is one of the buyers of Armenian cement: in 2013, Georgia imported from Armenia 185,000 tonnes of cement with the customs value of $ 11.8 million Cement ranks second in the list of products imported by Georgia from Armenia.

In 2013, cement was delivered to Azerbaijan also from Russia - 251 thousand tons ($ 27 million), Iran - 607 thousand tons ($ 102 million), Turkmenistan - 8.4 thousand tons ($ 350.8 million), Turkey - 7.4 thousand tons ($ 1.2 million) and other countries. - 08A-