Imports of cement, in particular from the Ukraine, have flooded the Romanian market, where they may achieve a 6% share this year. Until two years ago, the market was split equally between the three domestic producers (Lafarge Romcim, Holcim Romania and Carpatcement). Since then imports increased no less than ten times, reaching a value of 6.3 million dollars in the first seven months of the year.
The cement market, which has annual sales of 250 million euros and a rate of growth estimated at between 5% and 10%, may hold a surprise for producers this year in terms of growing sales and declining market shares.
"According to statistics, cement imports exceeded 140,000 tonnes in the first months of the year, which represents significant growth compared to last year. In my opinion, imports could reach 300,000 tonnes by the end of the year. Globally, the cement market will amount to some five million tonnes for 2004," Kurt Habersatter, Holcim general manager for Eastern Europe, told Ziarul Financiar. Swiss group Holcim, the world's second-largest cement producer, has three plants in Romania. Kurt Habersatter became the group's general manager in Romania at the beginning of last month, coordinating Holcim's operations for nine countries in the region. Previously, Habersatter was president and general manager of Holcim Romania, the local subsidiary of the Swiss group. He was replaced in that role by Markus Wirth, a 55 year-old Swiss national, who worked previously as Holcim's integration director for Serbia and Kosovo.
The first seven months of this year saw cement imports of 141,000 tonnes, more than double the amount for the same period last year, and ten times more than in the period January-July 2002, statistics show. Cement originating from the Ukraine clearly dominates imports, accounting for some 95% in terms of quantity and 78% in terms of value.
"Imports from the Ukraine are made through the local traders (from Romania)," Habersatter added.
Construction companies in the Moldova area turn to imports from the Ukraine, market sources told Ziarul Financiar, though without revealing the names of these companies. The acquisition price of Ukrainian cement is in the region of 35-40 euros per tonne.
The soaring imports of cement on the Romanian market could be worth 12 million dollars this year, as data from the past two years show that annual imports tend to be double the quantities recorded for the January-July period.
"Imports are increasing because of the monopoly created by the three domestic producers, and the import liberalisation has slowed down the price hikes. We should get as much imported cement as possible, until prices on the domestic market go down. We support this competitive activity on the cement market," said Liviu Daschievici, executive manager of the Romanian Association of Construction Entrepreneurs, which represents more than 1,000 construction firms.
Lafarge, Holcim and HeidelbergCement have repeatedly been accused of setting exaggerated prices for the domestic market, compared to neighbouring countries, and of having formed a kind of cartel to fix prices. Officials from the cement producers have denied the allegations. Over the last two years, the Competition Council has been conducting a thorough investigation into the matter. The investigation is due to end by mid-November.
adrian.mirsanu@zf.ro
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