Glass production in Russia fell by 30 percent due to sanctions

The workload of glass factories in Russia has decreased by 30 percent, and production has also decreased. Flat glass sales fell due to reduced domestic demand, disruptions in logistics and sanctions. This has already driven prices down.

The load on the production of sheet glass, which is used primarily in construction, has decreased by 30%, follows from a comment by the press service of the Ministry of Industry and Trade, received by RBC. In May 2022, the loading of glass production in Russia amounted to about 70%, and last year, starting from March, it remained at the level of almost 100% due to high demand, they noted.

The volume of production also decreased, since it directly depends on the load, the ministry said. The Ministry of Industry and Trade did not give exact data on the decline in production compared to last year. But compared to April, in May, the production of sheet glass decreased by 20%, the ministry cites data, citing information from manufacturers. The press service of the ministry stressed that the needs of the domestic market in glass are fully met.

Salavatsteklo, a large glass manufacturer, has begun to reduce its production due to a decrease in demand, says Maksim Skirtin, director of sheet glass production at this company. According to him, sales in April fell by 25% compared to the same period last year, and by May it had halved. The decline in demand has already affected prices - in May they fell by 15-20% compared to the beginning of the year, he adds.

What is causing the drop in demand?

According to the Ministry of Industry and Trade, until the end of April 2022, the production of sheet glass in Russia was growing. In April, the volume of production increased by 3% compared to March, and in January-April 2022, the growth amounted to almost 21% (compared to the same period last year).

In May, the consumption of flat glass in Russia decreased, primarily due to a decrease in construction volumes, Roman Kuprin, Deputy Director of the Department of Metallurgy and Materials of the Ministry of Industry and Trade, said. According to him, in the first four months of 2022, demand decreased by 20%.

Source: www.rbc.ru