OREANDA-NEWS. October 20, 2009. The situation in the Ukrainian steel industry will become worse in the next four months. This forecast was made by Mr. Boiko, CEO of Mariupol Illich Steelworks < MMKI UZ U/R >, in his interview with Radio "Liberty". The reason is an increase in production in the previous few months which has not been supported by a commensurate growth of demand.  Real demand increase was observed only in China, but steel overproduction is to be seen there now, too.  Accordingly, their steel will flood the other markets, with consequences that are easy to predict.

Millennium Capital sees this news as NEGATIVE not only for Ukrainian steelmakers but also for the whole of Ukraine because the steelmakers are the principal Ukrainian cash (especially hard currency) makers. Along with an increase in the share of semi products (low margin products) in their output, both of the above factors will reduce steelmaking companies’ profitability and sales, as well as stem the inflow of hard currency in Ukraine.

Millennium Capital is an integrated financial services provider. Established in 2000 by a group of professionals with solid background in securities and corporate finance, Millennium Capital is now one of tickets selling for its flights due to high arrearage to the creditors of the company.