10 monthly output volumes of stainless steel in Russia decreased
According to data provided by the Association of Special Steels release of stainless steel in the Russian Federation for the period from January to October 2014 decreased by 19.8% compared to last year. For ten months the volume of production of stainless products in the current year amounted to 103 200 tonnes. During this period, the release of stainless flats fell by 37.3%, production of wire rod decreased by 18.7%, 77.3% billets, rebar by 1.5% compared to last year. Indicators of tubular products, in contrast, increased. Regarding the performance of last year's same period has increased the production of stainless steel welded and seamless pipes by 20.2% and 4.6% respectively.
Russian producers of stainless steel show a rapid response to the fall in domestic consumption. It is for this reason falling volumes produced stainless steel products, oriented to the Russian machine-building. Exported volumes are relatively small and for the most part directed to the CIS countries.
In October, the number of imported stainless steel increased by 9.7% to reach 23 700 tonnes on an annualized basis. Imports of steel long products fell by 17.1% in October. Imports of electric-welded pipes fell by 28%, the volume of imported flat products increased by 17.5%. Imports of seamless steel pipe products increased by 21.6%. The imported quantity of wire rod increased by 28.4%. These figures are given with respect to the same period last year.
At the same time the Russian mining and metal companies are not particularly eager to sell their shares. The current weakening of the RUB has a positive effect on income from exports. According to K. Chuyko, Chief Financial Group Equity Research, the company increased its revenues by almost half. However, there are injured parties. Manufacturers of pipes — in particular, the company OAO TMK — have reduced revenues by 39% this year.
At 12% reduced the cost of hot-rolled steel supplied from the former republics of the USSR and Russia, reaching the lowest level since the summer of 2009. The «Severstal» and Novolipetsk Steel are the winner. «Rusal» also received significant income from the recovery of the shares. The cost of aluminum in 2014 increased by 10%, and consumers are often still pay extra for speed of delivery.