OREANDA-NEWS. January 20, 2010. In 2009, the industrial output (IO) drop amounted to 21.9%, y/y. The main factors causing the IO drop were the decrease in metallurgy production (26.6%, y/y) and mechanical engineering (45.1%), which accounted for 19.7% and 10.9%, respectively, in the total IO in 11M09. The output reduction in metallurgy led to a slump in non-energy mining (17.4%), while the chemical sector output fell by 23.2%, y/y in 2009.

Millennium Capital: the IO drop slightly exceeds Millennium Capital's forecasts (-19%), which Millennium Capital had adjusted up from -22% after the metallurgy enterprises announced that they would increase their output in 4Q09. However, Millennium Capital expects that due to the increase in the world demand for metallurgy and mechanical engineering products, the IO is to increase by around 10%, y/y in 2010.