Russian experts ready to explore the impact of government incentives on construction and glass industries.
On January 1, 2023, a comprehensive state "building" program came into force in the Russian Federation. The stabilization of the construction market is one of the contributing factors to the production of flat glass. The topic "Application of glass in the construction industry" will be one of the main themes of the Russian International Glass Industry Exhibition in 2023, which will be held as part of this year's Russian Architecture Week.
Figure 1 The Russian International Glass Industry Exhibition in 2023
Analysts at the Union of Russian Designers noted that overall production of basic construction materials, including glass, was growing, but that figure was down by more than 5% from last year.
According to Rosstat, Russian companies produced 8.8 million square meters of flat glass in 2021. The main federal district for the production of flat glass in the Russian Federation is the Volga Federal District, followed by the Central Federal District.
The results of the survey in the first half of 2022 show that by the end of April 2022, Russia's glass production is on the rise: compared with the same period in 2021, it has increased by nearly 21% from January to April; but from May 2022, the production of glass begin descending. At the same time, nearly a third of profile glass production is underutilized: in May glass production was only around 70% utilized.
At the forum "On New Challenges and Tasks Facing the Glass Industry in 2022" held in June, Roman Kuprin, Deputy Director of the Department of Metallurgy and Materials of the Russian Ministry of Industry and Trade, explained that the decline in glass production was due to the decline in the overall construction volume in the country, as well as the fact that some enterprises There is a need for maintenance of glass manufacturing equipment.
Demand fell and flat glass prices fell, ending the first half 15-20% lower than at the beginning of the year.
According to the Russian Glass Federation, there are several reasons for the drop in glass demand: fewer new developments entering the market compared to last year, and fewer orders for replacement windows in second-hand housing.
The Government of the Russian Federation is currently considering various proposals to modify preferential mortgage loans, which is an important measure of state support for construction development. Kirill Kholopik, head of the National Association of Housing Developers (NOZA), believes that if the government cancels the preferential mortgage scheme, developers will be forced to significantly reduce the start of new projects, which in turn will further reduce flat glass production.
Figure 2 The Russian Glass Industry and Manufacturer
At the upcoming Forum 2023 on February 28, 2023, industry experts, government representatives, manufacturers, developers, and architects will discuss the situation in the construction and glass industry in more detail.
The 24th Russian International Glass Industry Exhibition will be held at the Expocentre Fairgrounds in Moscow from February 28 to March 3. There will be exhibitors from the Czech Republic, France, Hong Kong (China), Hungary, India, Italy, and China 100 companies from Russia, Turkey, and the United States will participate in the exhibition.
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