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«    June 2017    »

Break-stone production: disturbing statistics of the first half-year

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Break-stone production: disturbing statistics of the first half-year

Following the construction industry, the market of one of the principal construction materials, break-stone, has significantly gone into the doldrums. Its production decreased by 15.4%

The break-stone and gravel market, the most important basic market of construction materials, has shown negative dynamics this year. Its production in the first half-year decreased as compared with the same period of last year, and totaled 88.2 million m3...

Disturbing statistics
According to the data of the Non-commercial association of producers and consumers of natural construction materials “Nedra” (subsoil riches), the largest decrease of production (by 23.9%) occurred in the North-Western federal district. In the Southern federal district this index was only 3.2%.


Table 1 Production volumes

There was insignificant volume increase during this period in 17 of 73 regions, and the only reason was that there are working aggregate processing plants in those. They are the Novgorod region, Saint-Petersburg, the Republic of Altai, the Republic of Yakutiya (Sakha), etc.


Table 2 Production structure in the regions

Import falls, exporting is on its last legs
Another index depicting the industry's condition is the volume of shipments of this construction material. Large and average-size enterprises decreased it by 20%. And the railroad transported 21% less break-stone and gravel.
The import of break-stone to Russia also decreased significantly. The main importer of the product, Ukraine, delivered only 4.3 m m3 (to compare: last year it was 21.6 m m3).
Even worse are the export figures. Russian plants managed to sell only 146,000 m3 abroad, which is only 0.2% of the whole production volume.


Table 3 Import volumes

How much gravel lacks demand?
The domestic gravel and break-stone consumption decreased by more than 18% and equaled 89.3 million m3.

At the same time due to the absence of demand large and average producers’ stores have increased by 4 million m3 and achieved 45 million m3 by now. The average price for break-stone increased by 4.3% and is 438 rubles for 1m3. Gravel became more expensive by 18.2% and costs 447 rubles for 1 m3.


Table 4 Average break-stone prices by producers

Table 5 Average gravel prices by producers

From a quarry
Of course the statistics data in this or that way show the situation on the market. However it is always useful to get the information up close, from a producer.
“Certainly, break-stone production depends on the season, but this year it was not the season that influenced the production volumes,” said Alexei Yudin, the Director General of a mining company, in the interview with our magazine. “The country’s economy is in hard condition, and the sphere of construction was the first to suffer. The producers of construction materials followed.”

Concrete instead of break-stone
To stay afloat, Mr. Yudin’s company started producing concrete, luckily they have all necessary materials at hand. The start of two concrete producing plants allowed the enterprise to take breath for a bit.
“Strange as it may seem, but there is demand for concrete,” the director general does not conceal his joy. “The material is bought by private customers and construction companies. I think we’ll overcome the crisis. Besides, we managed to keep the work collective.”

It is difficult to make prognoses
According to experts’ assessments, the situation on the market of concrete aggregates changes every month, that is why nobody dares to make the prognosis for the industry on the whole. Still, producers hope for some better determined figures by the end of the year.


Tables source
CJSC "GS-Expert"; www.gs-expert.ru;

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