How the steel was in want of activity
2013 was unsuccessful for Russian steel companies: hopes for growth in consumption and prices didn’t come true. In conditions of fierce competition and overcapacity those will benefit who will be able to reduce costs and develop high-margin output of niche products.
In 2013, the Russian steel industry couldn’t increase and even maintain the production at the level of the last year. According to the World Steel Association (WSA), in January - October of 2013 domestic steelmakers smelted 53.65 million tons of steel that is by 2.7 % less than in the same period of 2012. Only China (8.3 %), Japan (7.7 %) and India (2.8 %) continue to show increase of assets in the world. Russia couldn’t join them. The International Conference "The Russian market of metals" ( held in Moscow at the end of November) showed: the season of rolled metal sales on the priority domestic market ended earlier than desired, and we should’t expect a noticeable improvement in the sector performances.
What's going on
According to the Russian Ministry of Economic Development, output of most mass products in the industry - finished rolled ferrous metal products (flat and bar sections) - fell by 2.6% (to 48.2 million tons) in January-October as compared with the same period of the last year. The growth was registered only in the segment of high-margin products, output of which is ten times less: coated steel showed the increase by 10.9 % (to4.1 million tons ), steel pipes - 5.1% (to 8.4 million tons); rod made of stainless steel - 30.9 % (to 766.4 thousand tons); iron wire - 5% (to 1.2 million tons ) and galvanized wire - 9.4 % (to 125.2 thousand tons).
