Metal market forecast for Ukraine for 2012

Since April 2012, Ukraine has significantly reduced the production of steel. Thus, she lost her position as a worldwide manufacturer. Where does the question come from: what does the market for metal production expect in the future?

Forecasts are not quite comforting for us. Despite the fact that the market has become independent of the crisis continues to grow, the share of Ukraine has sharply decreased in it. Weak domestic demand, only 20-30% of production is not able to hold the industry on swimming, which depends on foreign markets. Currently exacerbates the situation in the industry decline in steel consumption in the countries of the European Union, which is one of the world leaders in the consumption of Ukrainian metal products.

As for the largest metal rolling holding in Ukraine Metivest, which also includes the Azovstal factory, here the forecasts are not quite comforting. Since March 2012, the rental performance has significantly decreased by about a quarter, as a result, increasing its clean loss of more than 3.3 times. To improve productivity and increase metal production, Metinvest plans to completely reconstruct inflibrics at the Azovstal factory. As well as grind 3 coke batteries and suspend steel production in Marten’s furnaces.

In the general expectations of metal traders for the next year include a stable level of prices for metal rubles and pipes. On the one hand, the consumption of metal rolling by the construction sector, as well as machine -building and heat -power complexes for the summer and autumn of this year, should increase. On the other hand, there is a serious excess of proposal for metal rolling on the market both from the loaded capacities of metallurgical enterprises and from the warehouses of regional metal traders.







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