OREANDA-NEWS. OAO Belarusian Metallurgical Plant (BMZ, based in Zhlobin, Gomel Region) chose to reorient hardware exports from the Russian market, which demonstrates a waning demand, to Europe, BMZ Marketing Director Yuri Molchanov told a press-conference.

At the same time, both Russia and Europe remain major export markets for BMZ, Molchanov said.

The share of Europe-bound hardware exports expanded from 34% of the total volume of BMZ exports in 2013 to 46.2% in H1 2014, the marketing director said. Russia's move to devaluate its home currency by 12% undermined the appeal of BMZ metal exports to that market, the official said.

In the meantime, BMZ was there to witness a slight decline in hardware exports to the Middle East, while Africa-bond exports remained unchanged. At the same time, BMZ increased exports to the United States and Latin America.

The Belarusian company has been struggling to increase sales of metal products with a higher added value. In particular, BMZ promotes exports of metal cord - premium product with high liquidity.

BMZ exported USD 630.6 million worth of hardware products in H1 2014. Return on sales stands at 5.4%.

The global market of metallurgical products has not yet fully got back to normal after the 2008-2009 crisis, Molchanov said. With supply exceeding demand, hardware prices are slowly going down on the global market - by USD 5-10 per tonne.

At the moment, metal prices reached their lowest level in the last four years. Analysts say it will take approximately 15 years to balance the supply and demand, Molchanov said.

State-owned company Belarusian Metallurgical Plant was launched in 1984. BMZ exports about 85% of its output. In 2013 BMZ products were exported to the EU, Russia, the Middle East, Ukraine, the United States, Africa, South Africa. The EU, the Middle East and Russia account for almost 90% of the BMZ's total exports.