News & Markets
ICCX Russia 2021
Panel discussion on the development of masonry materials in Russia
During the mentioned period seven AAC factories were closed, therefore the capacity utilization increased dramatically during last three years. At the same time the price level was flat while accumulated cost inflation reached approximately 35-40%. The deficit in summer period of 2021 triggered immediate price correction.
The panel figured out several important statements:
Demand in high-rise residential construction was caused by state supported mortgage program thus it is less stable segment, while low-rise construction is based on fundamental demand on single family housing boosted by quarantines, home-office trends, etc.
Real estate companies start development projects in low-rise segment.
According to Xella Russia analysis, galloping price of lumber and insulation caused growth of timber frame building price growth by 60%, thus the low-cost segment solution moved to smart solution and started to compete AAC buildings (+30% price growth).
Other masonry materials will start to increase production volume in order to fulfill the demand in Russia. Demand on clay bricks increased as well, which was confirmed by LSR as a clay brick producer.
Main trends in AAC production:
Flattening consumption of AAC throughout the year (increase of winter shipments)
Low lambda value products offering monolithic solutions without obligatory insulation
Bigger formats with crane assembling on the construction site to decrease the workforce
Optimization of product mix to maximize capacity utilization factors
Panel discussion participants:
Dr. Gleb Grinfeld, CEO of NAAG - Russian Association of Autoclaved Aerated Concrete Manufacturers (moderator)
Akardii Glumov, Head of Intern. Direction of NAAG - Russian Association of Autoclaved Aerated Concrete Manufacturers
Alexey Onishchenko, Commercial Director, LSR. Stenovye Materialy (tm LSR)
Andrej Bashkatov, COO, CJSC - Xella-Aeroblock-Center (tm Ytong)
