Monday, September 19, 2011

Features of metal

Russia is one of the world's largest exporters of the metal. Nevertheless, the consumption and blacks, and non-ferrous metals in our country, things are quite the opposite: if the world is stable and growing every year, we have, the world's largest exporter, strap consumption is low. And it's not all. It is paradoxical but true: as long as that in Russia prefer to import domestic metal. However, the situation, at least in quantitative terms, began to change: last year, steel consumption in Russia has risen by 15-20% compared to 2005. Roughly the same figures and analysts expect in 2007. Nevertheless, compared with the demand for steel products abroad - a drop in the ocean. Indeed, the global market demand for metals, especially some color, mostly - advanced. To date, the annual turnover of Russian metallotreydinga 300-400 billion rubles. And, as predicted Ministry of Economic Development, consumption growth will be 3-5% per year. Few doubt that the main role in the growth of consumption will play the construction industry: experts "give" it to 15-20% annually. Some experts, moreover, added to the main consumers in rapidly growing areas of engineering. According to the Director of the Department of Industry Ministry of Industry and Andrew Deineko, the construction industry accounts for about 30% of domestic steel consumption, and mechanical engineering and metal cover about 40%. Share of the latter in the Russian industry is 16-17%, while in developed countries it reaches 50%. In addition, in recent years a growing trend of growth capacity of the domestic market, but so far in Russia is consumed less than 50% of finished rolled steel, 19% of the aluminum, 68.5% copper, 3.9% nickel, 78.6% zinc. As a positive trend experts say the growth of consumption of products with high added value - cold-rolled sheet, plate and sheet, coated steel pipes. Causes and consequences in general, the specifics of Russian consumption of metals rather paradoxical: while a huge number of metal leaves Russia for export, the country's high share of consumption of imported metal. This is due, firstly, the fact that after 90 years of XX century, when most of the domestic industry was in a state of permanent stagnation, the consumption of steel has fallen sharply. Accordingly, the Russian metkombinaty also reduced the production, content to "overtake" the export of products of low added value. And, when domestic customers were a little out of the crisis and to require metal producers were not prepared to meet the demand. Buyers are taking iron, pipes, etc. from foreign suppliers, which at the time appreciated the prospects of Russian market. Today in the metals market in Russia firmly established foreign companies. At the moment - it's primarily Asian manufacturers. In the iron and steel smelting is tsehvsyakih doubt not only on the Russian and the world market comes China. This "Asian threat" is so serious that even makes the world's largest manufacturers to agree with Russia's Severstal its policy of competition with China, for example, in the African market. In 2006, China's pig iron production volume amounted to only 46,6% of world production, rising to 404.17 million tons. - By 19.78%. "Celestial Empire" belongs to a third of the volume of steel production, and etc., etc. Such dominance of foreigners in the domestic markets and promotes the "backlog" of our country in the production of ferrous metals: for example, one single company, multinational Arcelor-Mittal, a year makes almost two times more black metal than all of Russia's metallurgical combine, put together. Another "sensitive issue" of the Russian market - it's highly processed products, and metal with special properties (galvanized steel, pipes, special steels, etc.). And here the gap strongly occupied foreign suppliers, such as the Finnish company Ruukki, generating cpetsstali with special properties of a new generation. The process is completely objective, yet in this segment (stainless steel high conversion) competitors have virtually no corporation in Europe. The need then is the product of the Russian economy is very high, especially in light of the construction of factories in Russia the world's auto giants. Sufficiently active in this sector metalllorynka and Ukrainian neighbors. But their main advantage is not as much money as the relatively low price. But now, according to the same Deineko, "the state is taking measures to protect domestic producers from unfair competition in the domestic market. For example, only the first half of 2007 were set anti-dumping duty on nickel-rolled products of countries - EU members at a rate of 0.84 euro per 1 kg, and engineering hardware from the Ukraine in the amount of 21,8%. In addition, in 2005 adopted antidumping measures against foreign producers in the segment, sales of the LDP. Another reason for the unpopularity of domestic products in the same domestic market - it is somewhat strange pricing policy of Russian metallurgical enterprises, which do not always take into account the strong competition in the metals market. So, in early 2007 due to this pricing policy the domestic price of steel products exceeded exports by an average of 15-20 dollars. According to rating agency "Expert RA", for this reason that the summer of 2006 exports of steel products from Russia for the first time in many years has fallen below 50% of its total production in the country. As a result, only the market galvanized steel ratio of domestic and foreign products is 25:75, which speaks for itself. Structure of consumption of the metal structure of metal in Russia varies. According to the Analytical Center of the Russian Union of suppliers of metal products, metal consumption in the North-West of Russia is quite different from "the average temperature in the hospital in the country. In the North-West it is processed more than in Russia as a whole, in such industries as metallurgy and machine building, food industry, as well as businesses related to the production of fuel. Less - in the electricity industry, timber processing and chemical industries. If the lead figures, the consumption of metal in the Northwestern Federal District is at a level 1-1,5 kg per capita. Nevertheless, according to the general trend is much lower than in the EU and the U.S.. The choice of Sochi, the capital of Winter Olympic Games -2014 as well as true experts predict, will affect demand for the metal. According to forecasts, voiced by the Russian Union of Metal and Steel Suppliers, its consumption in the SFD will grow by about 2-2,5 million tons. As well as lead to the development of metallurgical industries in the southern region. Apparently, this demand will shift to the construction materials - especially pre-fabricated lightweight metal. According to the vice-president of Ruukki Construction division in Russia A. Shuhardina, these buildings will reduce the time to create a developed commercial and sports infrastructure in the region. Ferrous metals Back in 2001, some experts predicted that by 2010, market capacity of the Russian Federation of metal, ferrous metals will grow to 33 million tons. These roof Ruukkidannye were published in the journal "Metal Supply and Sales". Analysts, however, as it turned out, not "lasted": domestic consumption of finished rolled steel in 2006 amounted to 33.3 million tons, while domestic supply of rental on the domestic market amounted to 29,8 million tons. Increased consumption of flat products. In the automotive industry and agricultural machines increase in the consumption of flat rolled products amounted to 11%. In total supply of general engineering in the year it was 23%. You can also mention power engineering (supply sheet grew by 5%). According Rusmet among major customer segments only shipbuilding enterprises have reduced their consumption of flat rolled steel products (-15%). After a small rise in the past year, the industry is once again reduced the consumption of steel products. Actively growing segment of the manufacturing enterprise which is made from a sheet roll-formed profiles, especially in demand in the construction market. Consumption here rose by 32%. Largely this is due to the increasing popularity of light metal structures that are based on such profiles. Such activity is stimulated by the realization of national projects - especially agriculture and road. Increasingly growing demand for galvanized and painted rolling, which in large quantities demanded the construction industry. Construction and automotive are key sectors of consuming this type of metal. Actually, the consumption of galvanized steel in Russia in 2006, according to specialists of JSC "MMK", totaled 1.6 million tons., Polymer - 740000 tons. Of them, 491,000 tons. accounted for imports. Dominated by supplies from Kazakhstan (129 000 tons.), China (94000 tons.) And Ukraine (84,000 tons).. Another 31,000 tons. arrived in Russia from Estonia, 24000 tons. - From Turkey and 21000 tons. - From India. The share of suppliers from other countries accounted for another 104,000 tons. galvanized steel. According to the forecast of experts from MMK, NLMK and Severstal, this year the total growth in consumption of galvanized rolled metal and polymer is not less than 200,000 tons. In 2006, increased domestic consumption of steel pipes - by 27,6% to 7,7 million tons. Delivery of domestic pipes for the domestic market totaled 6.4 million tons. Significant growth in consumption is largely due to increasing demand for large diameter for the repair of existing and construction of new main gas and oil pipelines. Delivery of pipes for industrial enterprises in Russia has exceeded 1.1 mln.tn. The largest volumes of shipments have been observed in manufacturing - an increase compared with 2005, amounted to over 30%. Characteristic factor for the development of industrial production was a significant increase in consumption of pipe factories of General Machine Building, which was more than 50%. Non-ferrous metals competitiveness of Russian companies in several industries (primarily aluminum and nickel: production of nickel and titanium, Russia ranked first in world production and export of aluminum - the second) is not in doubt. However, the feature of the domestic non-ferrous metallurgy - it's the same export-oriented: the domestic market consumes not so much, and experts estimate the volume of its modest feature "relatively small". On the world market of nonferrous metals majority (75%) accounted for three metals: aluminum, copper and nickel. Accordingly, the main consumers of the "Big Three" - engineering, construction, transport sector, energy and electronics. Currently, per capita consumption of aluminum in Russia is correlated with the level of non-oil sector and 6.5 times lower than in the U.S., three times - than in Germany and in 4,7 times - than in Japan, copper - lower, respectively, in 8 , 5, 12.4 and 8.1 times; nickel - 2,4; 4,8 and 5,2 times. In the global aluminum market in the first half of 2007 there was a deficit of 70,000 tons. The same lack of covered copper market. The size of its first six months amounted to 216,000 tons. Production of copper GOKami (copper in concentrates plus refined copper, obtained by the process of SX-EW) for the first six months of this year reached 7.7 million tons., That on 4,7% more than in the first half of 2006. On the nickel market in the first half there was a deficit of 2,600 tons. While the quantities of the metal fell by 5,700 tons. Extraction of nickel in the first half rose by 8% compared with the first half of 2006 to 760,200 tons., Whereas the production of refined metal has shown growth in 11,8%, mainly due to China, Finland and Canada. World demand for nickel rose in the first half to 78 000 t. The dynamics of nickel production in Russia in January-July 2007 compared to January - July 2006 amounted to 98,1%. In enterprises the main supplier of this metal - OJSC MMC Norilsk Nickel - in January-July 2007, nickel production reached 96% over the same period last year. Consumption of metals in Russia rising sharply. The figures, which give analysts more often are less than real. This is due, no doubt, the growth of manufacturing, especially heavy industry, and of course building boom, the magnitude of which surprised even the worldly-wise experts. The structure of the steel consumption is changing in "real time". Therefore, Russia has all chances to get rid of the "syndrome of paradoxical consumption of metal" (export-import imbalance) that she was "sick" today.

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