Business Emirates # 16 (September - October 2007) - page 155

thepriceswentup to340-350hryvnias”.Notonly
cementmanufacturersbut also the intermediaries
madeprofitoncementshortage.Customers
complained that intermediariescharged600-720
hryvniasper1 tonof thesamecementandduring the
timeofmostacuteshortage thesalesweremore like
auction. Sometimes, thesuppliersevenannounced
the initialpriceon the telephone to twocustomers
and theymade their increasingbids taking turns.
Eventually, the traderswouldgetprofitableoffers.
Thedemand forcementwentdownabit
inDecember2006– January2007.However,
customersadmit that rightafter theendof the
holidays, sincemid-January,Ukrainianproducers
would increase thepricesby$20-25per ton. They
explain thisprice increaseby thegrowthofenergy
carriers’prices, increaseofminimumsalariesand
need forequipmentmodernization.At thesame
time, cementproducersstate that the income they
receive isstill insufficient.AndreyPanchenko,National
DirectorofHeidelbergCementGroup inUkraine
(3cementplants; founded in2001;more than2.5
thousandemployees) says that:“according to interim
estimations, over the year 2006, threeplants
ownedbyHeidelbergCementGroupweregoing
toearnapproximately18millioneuroof gross
profit. This isnot enough tobuyevenonecoal
mill,whichcosts 19-20millionEuroandwhich
isneeded toconvert theproduction fuel from
natural gas tocoal. Therefore, theearnedprofit
covers theplanned investment onlypartly. At the
same time, in2007, theheadcompanyplans to
invest 160millioneuro into itsownenterprises.”
Taking intoaccount theexisting stable tendency forgrowthof energy carriers’prices
and increaseof demand, theprices for cementwill continue togrow in2007.
MARKETPASSPORT
MERCHANDISESOLDONTHE
MARKET:
CEMENT
Numberofmarket subjects:
14manufacturers
Productionvolume in2006:
13.68million tons
Productionvolume in2005:
12.14million tons
Salesvolume in2006:
12.12–12.14million tons, $800-850
million in retail prices
Salesvolume in2006:
10.9million tons, $640-660million in
retail prices
Export in2006 (10months):
1.33million tonsor$54million (invoice)
Import in2005 (10months):
0.08milliontonsor$60.7million (invoice)
Export in2005:
1.48milliontonsor$60.3million (invoice)
Import in2005:
0.2million tonsor$7.87million (invoice)
Sales structure in2006
(inmonetaryequivalent):
national products –more than98%
Importedproducts – less than2%
155
ÍÅÄÂÈÆÈÌÎÑÒÜ, ÁÈÇÍÅÑ, ÈÍÂÅÑÒÈÖÈÈ
BUSINESS EMIRATES
UKRAINE -UAE
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