OREANDA-NEWS The introduction of minimum cement sales volumes on the stock exchange in Russia may eventually lead to higher prices for the key building material. Valery Bodrenkov, head of the Soyuzcement Association's exchange trading working group, warned about this risk. His words are quoted by TASS.

In this scenario, the cost of cement for construction companies may rise, the analyst believes. Such attempts by the authorities to establish control over the industry will lead to negative consequences, Bodrenkov stressed. Against the background of the lack of interest from real consumers, resellers will become more active market participants. The consequence of this will be an increase in the cost of building materials for developers.

Currently, the key consumers of cement in Russia are manufacturers of reinforced concrete products, concrete and contractor companies. They are used to working with sellers on long-term contracts with fixed prices and terms of supply. With this in mind, it makes no sense to purchase products on the stock exchange, where the value of lots may vary. "This casts doubt on the very possibility of creating a liquid market," Bodrenkov concluded.

The initiators of the above measure were the Federal Antimonopoly Service (FAS) and the Ministry of Industry and Trade of the Russian Federation. According to the authors, the introduction of a minimum volume of cement sales on the stock exchange should help reduce the number of intermediaries in the supply chain of building materials and increase supply in the domestic market. In other words, Bodrenkov and the initiators hold opposite opinions regarding the consequences of setting an exchange minimum for cement sales. According to the representative of the industry association, such a measure will not completely eliminate intermediaries in the sale of building materials, which is fraught with another price crackdown.