stainless steel production volumes continue to decline

Today, the real demand for stainless steel is still below the offer. In June this year the price situation influenced by the significant reduction in business activity. Effective demand has fallen markedly. The volume of proposals is at a high level. In order to maintain turnover, many companies have reduced the selling the price almost to zero profit. Such a move would not affect the price situation in general. During January-June 2015 Stainless Steel consumers have significantly reduced production volumes with respect to 2014. When comparing the same period of 2014−2015, it is clear that the production of refrigerators has declined by 24.5%. The production of passenger cars fell by 24.4%, washing machines by 13.3%. Production of passenger cars decreased by 65.7%. If we talk about the manufacturing sector, the index of production for 6 months fell by 6.6%.

Demand decreased significantly, but the majority of consumers to adapt to the existing conditions. Implementation of «any means» of the goods is not so relevant. Accordingly, it decreased receivables, however, an increase in inventories in the warehouses. The cost of production should be the change in RUB.

In June this year, the release rod in stainless steel coils reached 1,000 tons according to the Federal State Statistics Service. Regarding the results of the 2014 production volumes decreased by 13.8%. If we compare the figures with those of May 2015, the observed growth of 8.6%. As a whole for the period 6mesyachny production of stainless steel wire rod dropped by 3.6%. The cost of flat cold-rolled AISI 304 2 (08H18N9) in July increased by 2.7% compared to June 2015. Price of 1 ton mark reached 218.680 thousand. RUBs VAT. The cost of AISI 321 2 (12X18H10T) increased by 2.9% to 234.720 th. RUB. The price of AISI 430 2 (08H17) rose by 2.8% to 116.660 thousand. RUB.

In Russia, the share of foreign products in the consumed volume of cold rolled flat products reached almost 95%. Accordingly, the pricing of the Russian market is based on the costs of importers importing products. Experts predict that the domestic price for cold rolled flat products will increase in August. What is surprising, even with a decrease in the value of the external market, taking into account the appreciation of RUB.