Recently, the Uzbek government lowered the mandatory quota for cement producers to sell through commodity exchanges from 50% to 25%. The policy adjustment has raised concerns among experts that it could further push up cement prices during the peak demand season.
Last year, in an effort to reduce the price of cement, the government reduced the tax rate on limestone used in cement production by four times. However, this measure has not had the desired effect, and cement exchange prices have risen by 30% since the beginning of the year. At present, the government plans to reduce the mandatory sales quota for cement producers from 50% to 25%. Economist Otabek Bakirov noted that the decision could push prices even higher during the peak demand season from March to October. "This decision will allow cement prices to rise further between March and October when demand is rising sharply and supply is unable to keep up," he wrote. "Small consumers and retail buyers-groups that are not important to large producers-will be most affected."
Last year, the government halved the tax rate on limestone used in cement production, in fact almost quadrupling it. The original intention of this decision was to "prevent a sharp rise in the price of cement products" and "enhance the competitiveness of domestic producers relative to foreign suppliers". However, the price of cement has not actually fallen. Although tax incentives once slowed the pace of price increases, prices began to recover this year. The data shows that on January 3, 2025, the average exchange price of cement was 512,000 Uzbek som per ton; by October 16, the price had risen to 666,000 som per ton, which means that the price of cement has risen by 30% since the beginning of 2025. In fact, tax breaks not only failed to reduce prices, but also led to a decline in state budget revenue.
Similar measures have been taken before, but without success. In 2022, for example, Uzbekistan significantly reduced its underground resource tax rates: gas tax rates were reduced threefold for private companies and tripled for oil and gas condensates. The goal is to encourage private investment, but in fact, taxes on underground resource users have fallen by nearly 2 trillion som (12%), while gas production has fallen by 4% and NGL production by 3%. Uzbekistan has 40 cement producers with a total annual capacity of 39.7 million tons,
according to the Uzbuildmaterials Association.
Among them, Qizilqumcement JSC has an annual production capacity of 5.7 million tons, and 68.2% of its shares belong to United Cement Group, an offshore company registered in Cyprus. The remaining 31.8% is held by Jizak Cement itself. China Energy International Group Samarkand Cement Co., Ltd. (China Energy International Group Samarkand Cement LLC) has an annual production capacity of 3 million tons, 100% of which is held by Chinese companies. Tashkent Conch Cement Co., Ltd. (Tashkent Conch Cement LLC) has an annual production capacity of 2.5 million tons, 65% of which is held by Conch International Holdings (Conch International Holdings). 35% held by Xin Lei LLC.
Other major producers include Ohangaroncement JSC, with a capacity of 2.4 million tonnes per annum, 99.9% owned by Akhangaroncement (Akhangaron Cement CA); Fergana Yasin Building Materials Co. Ltd. (Fergana Yasin Construction Materials LLC), with an annual capacity of 2 million tons, is 90% owned by Shanxi Xiangsheng. 10 percent held by the Great Amir Khan Petroleum Company (Great Amirxan Oil); Huaxin Cement Zizak Co., Ltd. (Huaxin Cement Jizzakh LLC), with an annual production capacity of 1.66 million tons, wholly owned by Huaxin Central Asia Investment Company (Huaxin Central Asia Investment); Bekobodcement JSC, with an annual production capacity of 1.6 million tons, whose shareholder information is not publicly available; Quvasoycement JSC, with an annual production capacity of 1.08 million tons, About 90% of the shares are held by Raybird Limited, Rayblock Limited and Rayeross Limited, which are registered in Cyprus.
It should be noted that Uzbekistan imposes a 30% tariff on imported cement.
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