Ukrainian GOKs not able to compete in the market of China

​The Ukraine might reduce the supplies of iron ore raw materials to China – the main sales market of these products – due to high prime cost of products, and that will negatively influence on the country’s revenue in foreign currency, head of the state enterprise “Ukrpromvneshexpertiza”, V. Vlasyuk, said.

“The most serious threat is that we reduce our stake of supplies to China due to high prime cost, for example. It will mean the fall of production, reduction of taxes and will as well decrease the revenue in foreign currency”, he said.

He added that the export of iron ore raw materials is extremely important for the Ukraine as last year it made $3 bln on the sales of these products which is almost 6% of the total volume of the country’s revenue in foreign currency.

From the beginning of 2014 there was a sharp price fall for iron ore raw materials explained by the influence of 2 factors – demand fall for concentrate in China and rise of its production by the largest companies in Brazil and Australia.