Demand for glass in Russia still remains high, Nikolay Vavilov, a specialist in the strategic research department at Total Research, said on Tuesday, June 14.
Thus, he commented on the information that glass production in the country fell by 30% due to sanctions and reduced demand. According to the Ministry of Industry and Trade, back in April, the Russian glass industry showed growth: the volume of production for that month added 3% to March. However, in May, everything changed dramatically – in a month, production fell sharply by 20%.
According to Vavilov, in this situation there are no big reasons for concern.
“Firstly, the drop in current demand is an actual rollback to the indicators of 2021, and there is nothing terrible here, since the construction of houses has been going on and will continue, albeit in a slightly smaller volume than the glass industry would like. Secondly, the main problem is the suspension of automobile factories that actively purchased glass for cars. But this story is also temporary, ”the expert emphasized in an interview with Izvestia.
As Vavilov noted, in the worst case, mass privatization of factories of foreign companies will begin in Russia, where cars will be produced again, albeit not at all industrial enterprises. That is, here, after some time, presumably closer to the fourth quarter, the demand for products will begin to recover, the expert believes.
There can be no shortage of glass, since the production of glass will not stop for sure – the demand for it still remains high, the specialist added.
“A slightly different story is that the owners would like it to always remain at last year’s levels, but then there was a huge surge in construction, so it couldn’t go on forever,” Vavilov concluded.
On the same day, the Ministry of Industry and Trade recognized the problem with the decline in glass production. The department offered to wait for tests for the production of similar domestic packaging in Kazan, and consider glass bottles as an alternative.