|
Since the turn of the century, Russia has been undergoing a construction boom fuelling a need for raw materials and major growth in both the consumption and production of cement in the country. Spurred by the construction boom, consumption of cement reached over 55 million tons in 2007, a value of over 7.5 billion USD. Between 2003 and 2006, cement consumption expanded by one-third, and by 7% in 2007 alone. Cement demand will maintain its rapid growth as the Russian economy continues to develop at a fast pace, and the country’s construction boom continues. |
|
Read more...
|
|
China supplies 50 percent of the world’s total cement production. Historically, China has been the major supplier of cement for Mongolia and should continue to be in the near term. However, supply falls far short of demand and is contracting, providing unique access for volume growth and price increases. In addition, the trend of import growth may start to slow in line with increased production from Mongolian producers. Furthermore, the Chinese Yuan (“RMB”) has appreciated almost 22 percent against the United States dollar-linked MNT over the last three years, making Mongolian imports from China more expensive. The RMB is expected to continue appreciating as it remains undervalued and China continues to maintain current account surpluses and growing foreign exchange reserves.
|
|
Read more...
|
|
|
|
|
|
