The main risk for Ukrainian metallurgists

The main risk for Ukrainian metallurgists in 2010-2011 may be the overproduction , said Roger Manser, director of the Steel Business Briefing research company. According to Mr. Manser, manufacturers will be forced to reduce prices for their products, because this year about 1.4 billion tons will be produced, and 1.38 billion tons are sold. Therefore, Ukraine needs to develop domestic consumption of metal products, otherwise Ukrainian steel producers may experience marketing difficulties, as was already the case at the end of 2008.

The development of the domestic market is also important in connection with the growth of competition in the main market for Ukrainian meta-enterprises, the vice-president of the Ukrainian association of ferrous metallurgy enterprises Sergey Grishchenko believes. In 2008-2010, Türkiye increased the production capacity of a flat rental of 2.5 million tons and plans to introduce another 6 million tons by 2012; In the past two years, projects have been implemented in the Middle East and North Africa to introduce new capacities of 13.5 million tons; In Asian countries, in particular in Indonesia, Malaysia, Vietnam, Pakistan, Bangladesh and Taiwan, about 8.5 million tons of capacities are expected.

As world practice shows, the volumes of steel consumption in developing countries proportionally correlate with GDP growth, which forms solvent demand in the market. Therefore, the main task for the development of the domestic market is to ensure political and economic stability, the development of business, an influx of investment and lending.








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