Italy in 4th position - Russia is the market of the future

The major players in the natural stone markets have dramatically changed in a short space of time. Italy as main producer and Germany as main customer have been replaced by China and the USA respectively. Other countries have long been in the fast lane.

Italy is still the yardstick for many people in the natural stone industry – and certainly rightly so – in some respects. No other country in the world has such a broad, in-depth know-how of stone quarrying and processing based on centuries of experience. However, other countries have caught up rapidly and are making life difficult for the Italians, who were previously accustomed to success. In the mass production segment, China and India have meanwhile taken over the market leadership.

Italy still in 4th position

Italy, which was still the world leader in stone quarrying at the start of the 1990's, has meanwhile been overtaken by China, India and by Iran. Other countries like Brazil and Turkey have caught up in huge steps and are challenging Italy. Traditional producer countries like Spain, Portugal or Greece have also lost ground to newcomers like Brazil or Egypt.

Italy was once the leader for raw material imports, too. Large quantities were purchased all over the world, processed in Italian works and then mostly re-exported. China meanwhile imports twice as much in volume as Italy. Taiwan, which produces mainly for the Japanese and American markets, also has a clear lead over Italy. The suppliers of these raw materials are a little more widely scattered, but China holds top position here as well, followed by Turkey, Spain, Brazil and – also in 4th position here – Italy.
In terms of value, the finished products segment is naturally the most significant in the natural stone trade. Here China is also the top exporter with a substantial lead. The quantity exported from China in 2005 was already over three times more than Italian exports. Turkey, Brazil and South Africa follow at a distinctly lower level, but in contrast to Italy with a growing volume of exports.
The most important customer for traded finished goods in 2005 was the United States, as in the previous year. According to the IMM statisticians, imports into the USA were some five times more than German imports. Only a few years ago, Germany was still the most important customer in the world for international natural stone suppliers. It still manages 4th place, but meanwhile after South Korea and Japan and closely followed by Canada, which – from a relative viewpoint – is booming even more than the USA.

Russia – market of the future

The demand for natural stone in Russia is growing noticeably due to the dynamic building industry. The import share in Russia is large, especially for processed stones, as marble and granite are increasingly purchased abroad for prestige reasons.
The annual turnover of marble and granite in Russia is currently estimated at about 500 million US dollars. The potential is considerable. The biggest demand for natural stones at present is mainly in the cities of Moscow, St. Petersburg and Krasnodar. Private customers should provide the strongest stimulation for demand in the near future. Their market share of granite and marble is expected to equal that of industrial customers as soon as 2006. A large part of the imports, especially marble, comes from Italy and Spain.
As a supplier of natural stone, however, Russia is still in the bottom league at international level. According to IMM, altogether 800000 tons of natural stone a year are currently extracted in Russia.