The Director General of the Russian company Severstal Alexei Mordashov, who lost about 1.4 billion dollars of personal condition for this year amid a decline in the steel industry, the world manufacturers believes should agree to restrict the production of steel.
"Even a very good annual increase in steel consumption from 3 to 4 percent will not be able to compensate for excessive and ineffective capacities that must be removed," Mordashov said, Bloomberg reports.
The growth of world production steel for the third year in a row exceeds the growth of consumption, which leads to a decrease in prices and an increase in expenses in the steel industry. Severstal had to reduce the current expenses by 79 percent to return to profit in the last quarter, the leader and owner said.
The only way to protect the industry from its participants themselves is to conclude a certain deal between manufacturers of steel to reduce excess metallurgical capacities. The transaction may take place as part of the World Trade Organization (WTO) and must consolidate the industry.
The decline in the metallurgical industry, 60 percent of the companies whose companies work today with negative profitability, can cause a "deepest crisis" in the global economy, Mordashov emphasized. However, Severstal has no other way out how to open new enterprises, such as a mini metallurgical plant in Balakovo, since its construction began even before the crisis.
Alexey Mordashov is skeptical of the plans of the Chinese government to close extra metallurgical plants
|
Azovpromstal® 20 December 2013 г. 18:42 |
