The fall of Ukrainian metallurgy will last until 2013

Against the background of a slight, not more than one percent, the growth of steel smelting in September, the metallurgy of Ukraine is still in a state of falling production volumes.

The reason for this fall in production is the low world demand for steel products of Ukrainian power plants. Experts of the leading analytical companies in Ukraine unanimously say that there can be no question of any serious increase in the production of metal rolling by the end of this year.

The growth expected by optimists of the steel market under the completion of the summer holidays and vacations, unfortunately for metallurgists, did not take place. “In January-August, we still have a decrease by 5.6%. Usually the September is characterized by the revival of the market after the completion of all holidays in the east and summer holidays in the West. Unfortunately, this year this did not happen,” said the vice-president of Ukrmet Sergey Grishchenko.

The main disadvantages of Ukrainian metallurgy today can be classified as the absence of any long -term contracts in foreign markets, says Ivan Kharchuk, senior analyst at the Troika Dialogue Ukraine investment company.

Upon preservation of today's indicators, Ukrainian metallurgy will finish 2012 with losses in production volumes at at least 6%, predicts the senior analyst of the Art Kaptal investment company Dmitry Landa. “There are no sufficient macroeconomic prerequisites for significant growth,” the expert emphasized.








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