Metinvest failed in competition with Russian slabs

In 2012, revenue of the mining and metallurgical Metinvest holding from the sales of semi-finished items declined by 33% to $1.418 billion, due to decline in slabs sales by 1.154 million tons. Slabs sales declined by 55% to $689 million, including 49% due to the decline in slabs sales and 6% due to decline average slabs price.

The report of Metinvest says that decline in slabs sales is presupposed by their unprofitability due tothe  unfavorable state and low consumer activity in the main regions consuming slabs, Asia and Europe, in 2012. Excessive supplies of slabs connected with growth in supplies by the Russian producers, and growth in competition in its turn, and a permanent decline in the prices for flat sections led to fall in slabs in price since January until December by $100 per ton in average.

However, the sales of square semi-finished items increased to $480 million due to growth in annual sales by 344,000 tons. The state of affairs at the square semi-finished items was presupposed by the tendencies at the markets of raw materials and long-size rolled steel. The state was more favorable in comparison to the state at the slabs market. Despite the decline in consumer activity at the trade semi-finished items market since April 2012 due to decline in demand and cheapening of scrap metal, in August and November demand raised for short periods of time presupposed  by relatively favorable state at Middle East and positive trends at scrap metal market. As a result of these multi-directed trends, the price of semi-finished items was by $80 per ton more than the price of slabs.

The sales of semi-finished items, in million USD and in thousands and tons:

Translated by Nadezhda Poltoratskaya        

Source: http://rosinvest.com/novosti/1020906