Soaring demand for cement leads to imports from China
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Soaring demand for cement across Europe and in Finland has surprised the cement producers. This has resulted in imports of the material from as far as Thailand and China.
"The haulage becomes pricy. For us the increased demand costs money", sighs marketing manager Pauli Haapakoski, of Finnsementti. The company is forced to acquire the raw material for a costly price in order not to disappoint clients and to keep up with the annual contracts. Most of the cement goes to the concrete industry.
The domestic demand for cement has been increased by the vigorous building of various types of business premises, and road construction.
The demand is high elsewhere in Europe as well, especially in Russia and the new EU countries. Almost the entire continent now suffers from an acute cement shortfall.
"The supply of concrete elements in Finland in January-June this year saw an increase by a third compared to the first half of 2006. Even the sale of readymixed concrete was up by 23 per cent", explains chief economist Bo Salmén of the Confederation of Finnish Construction Industries.
The construction branch as a whole has not experienced such dynamic growth, however. Housing production, for one, does not seem likely to reach last year’s figures.
Concrete is mostly needed in the production of business premises, such as commercial buildings, office space, industrial structures, and warehouses. Also heaps of cement is used for infrastructure improvements, such as the construction of the bridges of the E18 motorway and the improvements to Hakamäentie in Pasila, or the new Vuosaari Harbour.
Before the recession years of the 1990s, there were four cement factories in Finland. Now, only two remain. Finnsementti, the country’s only producer, has facilities in Lappeenranta and Parainen.
During the worst recession times, only around one million tons of cement was used in Finland per year. Now, the cumulative sum for the past 12 months has reached two million tons, 20 per cent of which is imported cement.
In the past cement was bought from Sweden, but now Finland’s western neighbour needs all of its cement to satisfy the country’s own construction boom. Import from Estonia and Russia has likewise died down. "In St. Petersburg the price of cement is already double that in Finland", Haapakoski explains.
So far, the import of cement has not increased its price, as most prices are tied to previously agreed annual contracts. There is also enough cement even for private consumers, the industry confirms.
Helsingin Sanomat
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| 22.8.2007 - TODAY |
 Soaring demand for cement leads to imports from China |
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