Sales prospects are aimed at the domestic market

Today it is time to summarize some results in 2011. As you know, the metal distribution market demonstrated last year the demand increase by 35%. Many experts associate this indicator with the implementation of infrastructure projects in preparation for Euro 2012. So, after completing the preparation for the championship, the domestic market should fall by the same 35%, which will extremely negatively affect our metallurgical enterprises. It would be natural to assume that now it is very necessary to stimulate demand in the domestic market.

Speaking about the prospects of the domestic market, it must be understood that it is based on the solvency of probable buyers of the metal rolling. If there is an investment in such industries as mechanical engineering or housing and communal services, there will be an increase in the domestic steel market. In principle, Ukraine needs metal in huge quantities, it is high time to start updating the metallic final, which is more than 70%worn out. The pipes are vomiting, everything is falling, in disrepair, many communications, bridges, designs, from metal -singing and so on, their replacement will make it possible to load not only metallurges and machine -engineers, but builders. It is clear that the main problem is to have money for the implementation of metal -intensive projects.

But everyone perfectly understands that the situation with the approaching parliamentary elections only worsens the current situation. The state budget deficit, the decreasing investment attractiveness of Ukraine, the increasing social payments against the backdrop of populism and the spending of budgetary funds for unprofitable projects only exacerbate the current difficult situation in the market.

The General Director of the Ilyich Boyko, Vladimir Semenovich, in his interview for the factory newspaper Ilychevets, expressed the conviction that the key issue for the Ukrainian economy is the growth of domestic consumption of the products that are produced by domestic enterprises. “In the world today, an excess of production capacities steel by 500 million tons per year. After all, these products must be taken somewhere, to find a buyer for it. Slowly, but more and more, the country's leadership has an understanding of the need to make managerial decisions. It is necessary to make strategic decisions in order for the consumption of metal inside the country to grow, ”said Boyko.

Belief in our government, which until today is in a state of election campaign, is very weak. Instead of working on increasing attractiveness for investors, such sectors as housing and communal services, railway transport, and engineering, the government is occupied by frankly populist projects. After the elections, most likely, you can expect the implementation of unpopular measures