Russian sales of prefabricated concrete components continue to decline
The Russian business consulting website reported on April 29 that according to data from the market analysis of Russia's prefabricated concrete components compiled by BusinesStat, Russian finished concrete product sales have declined for three consecutive years. Overall, Russia's sales of precast concrete parts decreased by nearly 11% during 2013-2017, from 9.36 billion in 2013 to 8.43 billion in 2017. This trend is related to the reduction of large-scale residential construction and low-rise residential construction: The reduction in the scale of construction has led to a decrease in the demand for prefabricated concrete components that have been widely used to build various-purpose buildings. According to statistics from the Russian Federation’s national statistics, in 2017, Russia’s total built-up housing was 133 million square meters, down 2% from the scale completed in 2016 and 4.5% from 2015. According to the Russian Ministry of Construction, the scale of construction was reduced in 2016 and 2017. The reason is that the housing currently under construction in Russia is mainly due to the construction permit issued in 2015 when the country’s economy is difficult.
Russian producers of prefabricated concrete elements responded quickly to changes in sales. Therefore, following the reduction in domestic sales of concrete components, the output of this product will decline during 2015-2017. In Russia, the output of prefabricated concrete components in Russia was 8.34 billion pieces in 2017, a drop of 20.8% from 2014.
According to forecasts by BusinesStat, sales of prefabricated concrete components in the Russian domestic market will continue to decline during the period 2018-2019, with product sales falling by 3% and 1.5% respectively. With the stabilization of the economic situation in Russia and the recovery of the construction industry, Russia's sales of concrete prefabricated components will increase at a slow rate of 1.7-3.6% per year from 2020. In 2022, the sales volume of finished products was approximately 8.59 billion.