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The international market is suffering from an excess of the Russian and Ukrainian steel

24 March 2015

Due to the increasing volume of export of Ukrainian and Russian steel international market keenly aware of its excess. This continues to be the issue of a large number of exports from the PRC. European and Asian manufacturers are beginning to experience difficulties with the implementation of its own products. To date, demand for steel products remains in force. However, the price of steel over the last five-year period is at its lowest level. And it is possible that the price will fall even lower in the medium and short term. The increase in cheap steel from China, Russia and Ukraine becomes a very important factor.

According to statistics in 2014, Russia and Ukraine exported a total 46.4 million. Tons of steel. This amount is about 50% of the steel exported from PRC. Last year, China sent for export 93.78 million. Tons of steel. As shown by the January 2015 statistics, the overall production of crude steel in Russia increased by 6% to $ 6,130 million. Tons. In January last year, output reached 5.781 million mark. Tons. In Ukraine, steel production fell by 22.2% in January 2015 on the results of January 2014, when the volume was 2.506 million. Tons. The experts do not exclude the negative impact of the Russian and Ukrainian exports to the world price of steel. European manufacturers are also concerned about the growing export volumes from these countries.

The Indian government takes decisive action in the fight against cheaper supplies from Russia and the PRC. On 04.01.2015 the duty on imported steel will increase by 5%. As a result of rate increase from 10% to 15%. The move into the hands of local producers, which are rapidly losing ground in the domestic market. In addition, the Indian government plans to increase tax on imported metallurgical coal. Instead, it increases 2.5% to 5%.

Despite the fact that demand for finished steel and billet costs remain low, scrap prices have increased since the beginning of March. The main influencing factor was the consumption of scrap steelmaking Turkish enterprises. Now manufacturers are willing to buy as soon as possible loads, given their limited number. In December 2014 the growth of the cost of scrap metal was not observed, thus violating the historical trend. However, at the moment the price has increased due to lower volumes.

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