The cement market in Serbia is less competitive than the concrete market, due to the presence of three players who, due to their size and market power, can influence the price of cement and thus the price of concrete, according to the sector analysis of the Commission for the Protection of Competition (KZK), it was transmitted by Tanjug.
Sectoral analysis of KCK for the concrete market was based on the data of 22 concrete producers. The members of the commission emphasize that this is the assessment of the majority of market participants, which is stated in the concluding considerations of the sector analysis. The report on the sectoral analysis of the state of competition in the cement and concrete markets in Serbia covered a period of four years, ending in 2021, and was published on the KZK website.
“The majority of participants believe that vertically integrated cement producers are in a privileged position on the concrete market, in relation to independent concrete producers, because they acquire the basic raw material, cement, under more favorable conditions, while the vertical connection allows them stability and continuity in the supply of cement”, it is stated in the final considerations.
They add that the participants believe that in the future these markets will develop in the direction of using ecological materials and alternative raw materials in accordance with the principles of sustainability and environmental protection.
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They estimate that both markets have great development potential, with possible risks imposed by the current geopolitical situation on a global scale. Members of the commissions add that vertical integration, non-transparent and selective commercial policy of cement producers can lead to distortion of competition in the relevant markets.
The KPC recommended cement producers and importers to make their commercial policies as precise and clear as possible for existing and potential customers. “By selectively applying the rebate policy, certain market participants (customers) can be put in a disadvantageous position compared to competitors, which potentially limits competition on the market,” the commission members warn.
The recommendation to vertically connected market participants, who are simultaneously producers or importers of cement and producers of concrete, is to form transfer prices of cement on the cost principle.
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