KYIV. July 26 (Interfax-Ukraine) – Cement production in Ukraine in January-May 2016 increased by 10.5% year-over-year, to 3.19 million tonnes, CEO of Ukrcement cement producers’ association Roman Skilsky has said in an interview with Interfax-Ukraine.
“Taking into account growth the sector showed in the five months of this year – if it is a real trend reflecting the stir up in the construction sector, by the end of the year the cement sector could produce more than 9 million tonnes of cement,” he said.
Cement production in Ukraine would grow by 10% in 2016 compared to 2015, taking into account the seasonal specific of the sector under the condition that the sector will operate well, Skilsky said.
He said that in January-March 2016 exports of Ukrainian cement reached 62,700 tonnes. This is 71% up year-over-year. The share of exports of total cement production in the first quarter of 2016 (1.529 million) was 4.1%.
Skilsky said that these exports figures do not reflect the potential of the Ukrainian cement sector. They are linked to the introduction of various restrictions by key exports markets.
“The trend could have been upward if not for two things happened. First, Moldova introduced quotas for several types of industrial products, including cement, from May 13. Last year we exported around 140,000 tonnes of cement to this country. Now the quota is 500 tonnes, or nothing. Secondly, Belarus early suspended the certificates for batch production of Ukrainian cement [for three years] and introduce certification of cement batches,” he said.
“As a result, we expect that exports to Belarus and Moldova would considerably fall. These were the largest exports markets for Ukraine. Taking into account imports of clinker from Russia, we would see the negative impact on the entire exports-imports balance of Ukraine by the end of the year for 2532 commodity group (various types of cement and clinker),” he said.
Skilsky said that the sector intends to focus on development thanks to the domestic market, at least, until Ukrainian producers will have a chance to export to European countries.
Ukrcement unites Dyckerhoff Cement Ukraine, Heidelbergcement Ukraine, Ivano-Frankivskcement, Eurocement-Ukraine, Podilsky Cement, Mykolaivcement and Cement LLC (part of CRH Group).