A look at the heating industry in Russia

Heating radiator industry in Russia

According to the results of the analysis, in the first half of 2022, the share of radiator imports in Russia reached 35%, and dependence on imported equipment was 30%.

In general, the dependence of the Russian market on foreign raw materials in this industry is about 70%.

Based on the analysis of the customs value of heating radiator imports and its dynamics in the first half of 2022, the following main trends should be noted:

– Given the general decrease in the volume of imports of other goods, an unexpectedly “explosive” growth (almost 2 times compared to the same period of the last two years) in imports of aluminum and metal heating radiators is observed. Including in the “black bimetallic” category. And this significant growth may be associated with state control and supervision in the heating equipment market, as well as with the strengthening of the Russian ruble.

Against the background of a significant increase in imports of aluminum and bimetallic heating radiators, there is a “landslip”, a very significant and persistent decrease in the volume of imports of steel panel heating radiators (an almost 5-fold decrease in imports in two years. years – almost 2 times in 2021 and three times the remaining volume in 2022), which is probably due to a decrease in import sources, i.e. the exporting country, of which in the case of steel panel radiators, Poland is the main import. Unlike imports from China, from which mainly aluminum and bimetallic heating radiators are imported, from the EU countries, they have practically disappeared.

Imports from Europe as a whole in the first half of 2022 practically reached zero.

A gradual increase in the volume of imports of heating radiator parts is observed (an increase of 14% compared to the same period last year, and in the first half of 2021 there was also a 24% increase compared to the same period last year in 2020.)

The average customs value for all heating radiator categories over the past two years (compared to the same period in 2020) has increased by about 50%, which is consistent with the general situation with an increase in the cost price of imported goods.

The average customs value for the heating radiator parts category has also increased, but it has not been very significant compared to other radiator categories (11% compared to 2020).

The average price of one kilogram of aluminum, bimetallic and steel panel heating radiators for the period from 2020 to 2022 shows a significant increase.

The average customs value of aluminum radiators is 4.62 US dollars per kilogram of the final product.

The average price of bimetallic heating radiators per kilogram of the final product in the first half of 2022 reached 3.19 US dollars.

“Black bimetallic” as well as bimetallic heating radiators showed an overall increase: over the past two years by 45.7% from 2.1 US dollars in the first half of 2020 to 3.06 US dollars in the same period in 2022.

It is worth noting that if in the first half of 2021 the price of a bimetallic and “black bimetallic” heating radiator was almost equal (2.5 and 2.52 US dollars, respectively), then “black bimetallic” was even slightly more expensive than usual. bimetal”, then in the first half of 2022, bimetallic radiators again regained the price difference with “black bimetal” and “classic” bimetal, although they were slightly more expensive – 4.2%.

The price of steel panel radiators also corresponded to the price of aluminum and bimetallic radiators, increasing by 51% over two years and reaching a cost price of 2.25 US dollars per kilogram of the final product.

Although heating radiator components do not show a significant increase, and in the first half of 2021 compared to the same period last year there was even a slight decrease in the price of one kilogram of imports (by less than 1%), in the first half of 2022, like other categories of radiators, the cost of radiator heating components also increased by 11.2% to $ 2.88.

Particular attention should also be paid to the monthly dynamics of imports of certain categories of heating radiators

So, if the dynamics of imports of aluminum heating radiators in 2020-2021 did not show any particular deviations from the seasonal trend, then in 2022, since January, there has been a significant increase in import volumes by 2 or even 3 times more than in the same monthly period of the previous year.

In April 2022, importers probably continued to fill warehouses to the maximum and imported 2.5 times more aluminum heating radiators than in April 2020-2021.

In May 2022, although the growth rate of import volumes has slowed down compared to previous months, it still exceeds the same volume in the months of two years ago by more than 50%.

In terms of imports of bimetallic heating radiators, in general, the trend is similar to that of aluminum radiator imports, with the difference that a significant increase in imports began in February 2022 and continued to increase significantly in May (more than 2 times compared to the same period in 2021) and in June 2022 (38% more than the same period in the previous year).

Imports of steel panel heating radiators should also be given special attention, given the significant decrease over the past 2 years.

So, if in the first half of the year under review, in the period from 2020 to 2021, the monthly volume of imports decreased on average by almost two times, in the period from 2021 to 2022, the monthly volume of imports from March to June decreased by 6-8 times, which, as already noted, is due to the sanctions policy of European countries, namely Poland, which was previously the largest exporter of steel panel heating radiators to the territory of the Russian Federation.

In general, given that Polish radiators are practically not supplied, it is not possible to identify specific monthly trends.

But it is worth noting that imports of steel panel radiators from Turkey have been maintained, which in terms of volume in the first half of the year amounted to about 1 thousand tons, how in 2021 and in 2022, although in 2020 the volume of imports from Turkey was about 4 thousand tons, so there are risks of increased imports by importers in the direction of Turkey to replace the decrease in the volume of European exports.

The top heating radiator manufacturers in Russia are:
“Zlatoust Machine-Building Plant”
Rupipe (TM Vostok)
Production company “Lammin”
LLC “MASTERHALL”
OOO “FORTE PROM GMBH”
“Cheboksary Aggregate Plant”
LLC “Turbo-Tech”
LLC “ROSTERM NORTH-WEST”
Manufacturer of flexible piping “VITKOS”
OOO SNPO “TEPLOPRIBOR”
KITSN LLC
OOO “VEST”

Key and important factors for the presence of Iranian manufacturers in the Russian market

According to the initial research conducted on the heating radiator industry in the large Russian market and considering the key factors:

High and consistent quality of manufactured products
Preferential tariffs on import duties for Iranian goods to Russia
Low export costs of Iranian products to Russia compared to Western and Chinese goods
The proximity and proximity of Iran and Russia as a logistical advantage and the possibility of exporting Iranian goods to Russia by various methods such as land, rail and sea transportation in The shortest time and low shipping price
The absence of most of the market from famous Western brands
The possibility of rapid market share expansion and access to the competitive and business environment in Russia
It can be said that there is a high economic justification for the entry of the esteemed company “Tash Radiator” into the large Russian-Eurasian market, and the “Fardad” group of companies is proud to establish effective and successful joint cooperation in this direction.