OREANDA-NEWS. September 25, 2007. The capacity of the Ukrainian home metal market last year was estimated to be 7-8 million tons, out of which 3.5-4 mln. mt. was flat sections and 850 th. mt. were pipes of various production range. The average consumption of flat sections in Ukraine is now about 350,000mt. per month.

Despite such relatively low consumption level in the country last year production of finished rolled stock and semi-finished products was 35.4 mln. mt and production of pipes-2,6mln.mt. So, Ukraine is able to process only one third of the manufactured rolled stock.

“Ilyich” PJSC is interested deeply in dynamic growth of the home market, as it is more stable and predictable. ”Ilyich” metallurgists constantly increase the volumes of domestic shipments.
For instance, in 2005 the enterprise shipped for home market 759 th. mt. of flat sections and in 2006-943 th. mt., thus the increase of domestic shipment was 24%.

Within the last six months the situation on the home market in Ukraine was influenced by presence of large quantities of imported rolled stock, manufactured in Kazakhstan, Russian Federation and China. This affects rather badly the works of domestic manufacturers and consumers of rolled stock. It is known that the balance between demand and supply depends upon the conditions on the world market, seasonal peaks etc. At the moment the level of demand seems to be much lower than the level of supply, thus affecting drastically the growth of imported rolled stock.

According to the forecast the Ukrainian home metal market is to become stabilized even this month. Russian manufacturers have already announced their intention to increase sales prices for our country. So, drop in the volumes of import into our country from Russia and Kazakhstan may be expected, thus letting the steelmakers to redistribute the sold volumes of rolled stock, increasing home domestic shipments.

The material was prepared, with the help of the marketing department.