Cement Net Report: Analysis of Cement Market in Ukraine

With the acceleration of the negotiations between the United States and Russia, the end of the war between Russia and Ukraine is beginning to appear, and the post-war reconstruction of Ukraine has also been put on the agenda. As an indispensable building material in the process of reconstruction, the market's attention to cement has increased significantly. At present, the cement market in Ukraine is undergoing profound changes, and the production capacity and demand fluctuate under the impact of the war. However, with the increasing attention of the international community to the reconstruction of Ukraine, the cement and other building materials industries will usher in new growth opportunities. In the future, Ukraine's cement market is expected to accelerate its recovery and usher in a new chapter of development with the help of international forces and its own efforts. This paper analyzes and explores the current situation of cement market in Ukraine and the demand for post-war reconstruction. In the years before the outbreak of the

war, thanks to the growth of the construction industry in Ukraine, the consumption of cement in Ukraine increased year by year. In 2021, the construction industry in Ukraine increased by 6.8%, and the consumption of cement reached 10.573 million tons. However, with the outbreak of the war between Russia and Ukraine, the cement market in Ukraine has fallen sharply. In 2022, the first year of the war, the sudden war caused great damage to Ukraine's domestic construction industry, cement consumption fell 57% year-on-year to 4.545 million tons, and almost all cement factories were unprofitable. The situation improved in 2023, as the market adapted to work under wartime conditions, and cement demand increased due to the recovery of the construction market and the development of the national infrastructure plan. Ukraine's cement consumption in 2023 was 6.165 million tons, recovering 35.7% from 2022, but not yet reaching the level of 2021. The latest cement consumption data for Ukraine in 2024 has not yet been released, but the Ukrainian Cement Association said that in the first 11 months of 2024, domestic cement consumption demand in Ukraine remained at the same level as in 2023.

Figure 1: Decline

in cement consumption in Ukraine during the Russo-Ukrainian War Source: Cement Big Data (https://data.ccement.com/), Ukrainian Cement Association