Rus News Journal

Steelmakers have caved in

the Russian metallurgists start to bear straight losses from financial crisis. One of the largest in the country Magnitogorsk metkombinat reduces manufacture on 15 % - work is lost by 10 % of employees. The others metkompanii while officially do not admit reduction of output and workers. But everything, except a Mechel recognise possibility of it.
yesterday Magnitogorsk metkombinat (MMK) as the first of the Russian metallurgists recognised direct influence of world financial crisis on the business. As the vice-president of management company MMK under the finance and economy Vladimir Shmakov, " has informed; in connection with sharp falling of the prices in the world markets on black and nonferrous metal today to sell production for export it is unprofitable . Therefore the industrial complex since October reduces volume of output on 15 % at falling of volume of orders approximately on 40 %. As a result without work remain to 3 thousand employees MMK (all there works as 30 thousand The person) and an industrial complex management searches for possibility of their employment.

other metallurgists while are more careful in statements. So, representatives New Lipetsk metkombinata (NLMK) have confirmed that from the end of September demand for half-finished products (slabs, preparation) has sharply decreased. Basically decrease has occurred on export to Europe and the USA. the panic in the company is not present, though possibilities of revision of the production program cannot be excluded - speak in NLMK. In Severstal also analyze a situation . In Evraz Group recognise necessity of optimisation of the plan of manufacture for October and November taking into account an uneasy situation in the internal and international markets .

Anxiety show and trubniki. The trumpet metallurgical company has declared yesterday reduction kapvlozheny in 2009 in 2,5 times, to $300 million a Number of projects will be reconsidered - the vice-president of the company on strategy and development Vladimir Shmatovich has added. Only a Mechel yet does not reconsider production plans and considers all possibilities on preservation of number of the personnel .

Foreign manufacturers behave on - to a miscellaneous. The world`s largest Arcelor Mittal in September has informed that plans to reduce manufacture to 15 % in some markets. South Korean Posco informed on intention to reduce volume of output on 20 %, but has changed the mind after the positive reporting on the third quarter. Has refused curtailment of production and Japanese Nippon Steel. But last week four large staleproizvoditelja China have begun negotiations about possible curtailment of production on 20 %. On Monday about intention to bring volume of output into accord with a level of demand has informed gollandsko - British Corus. Even worse a situation in ferrous metallurgy of Ukraine. As general director OP " has declared yesterday; metallurgprom Vasily Harahulah, in the country 15 blast furnaces (almost half of capacities) - on " are already stopped; ArselorMittal Krivoi Rog Alchevsk metkombinate, Kramatorsk metkombinate, metkombinate a name of Ilyich.

analysts do not wait for fast improvement of a situation in metallurgy. till the end of the year we can see decrease in manufacture at the leading Russian metallurgical companies on 20 - 25 % - Olga Okunev from Deutsche Bank considers. Analyst IK the Prospectus Dmitry Parfyonov predicts long character of crisis in metallurgy - to ones and a half - two years. Maria Kalvarsky from the WHALE of Finansa sees objective preconditions for situation deterioration in the future: builders and developers have already declared a suspension of the projects. Besides, reduction of prices can change plans of oil and gas sector to oil concerning realisation of their investment programs. And the electric power industry which counted on the involved financial assets for realisation of the investment programs, at the given stage cannot look ahead so confidently " any more;. However, Oleg Petropavlovsky from IK Brokerkreditservis notices that there is a hope of relative stability of home market - after all while the internal prices keep practically in all regions of Russia, thus that decrease in the export prices by various kinds of hire already makes 7 - 20 %.

On this background representatives of nonferrous metallurgy are sharply allocated with optimism, in whose markets some months the bad conjuncture keeps steady. we in the beginning of 2008 have started to carry out a series of measures on increase of efficiency and decrease in expenses that allows us to be competitive from the point of view of the cost price, - has declared the director for public relations Rusala Kurochkin`s Belief. - Therefore we work in full conformity with ours business - the plan, without reducing output . In GMK Norilsk nickel too say that while about revision of production plans of speech is not present.