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Russia observes the changing patterns of consumption of steel

23 November 2015

Director General of the «Brok-Invest-Servis», W. Arsenyuk, an analysis of the situation on the steel market. The results were presented at the International Conference «Russian Metal Market — 2015». In accordance with their January-July decreased production volumes of consumption. Demand for metal products fell by 28%. Thus at 16% area, 29% of the beam on the channel by 30%. The production of a style reduced by 16%. Reducing the use of structural shapes is oriented in recent years. Even in the first quarter of this year, the excitement in the sector has not been observed. With respect to the variety apparent consumption declined by 14.2%. Production volumes fell by 0.8%. For 7mesyachny period of production of reinforcement in Russia exceeded the number of apparent consumption. In the sheet metal sector, consumption will fall by 9% in 2015. The demand for hot-rolled products will drop by 18%. Consumption rolled coated polymer falls by 16%. However, plate consumption will increase by 24%.

After considering the data provided, it is possible to talk about the evolution of the demand that has arisen on the Russian market. It is noted certain trends. There has been a shift in demand towards the shaped tube and a light beam from the sill. Substantially increased intake valves. The domestic market is filled with new producers. The deficit is not available, the effect falls oligopolies, monopolies. The sector is not unique goods. Production of almost any product possible by several manufacturers. In the steel sector production localization observed. Remote producers are unable to compete on a background of logistics costs. Because well-being is dependent on the manufacturer's proximity to the area of ​​consumption.

The major share of consumption is concentrated in groups of building assortment. It is the sector most susceptible to cost fluctuations, exchange, investment climate. The proportion of metal working and growing. User comfortable with the possibility of obtaining a «nano-products». Much more interesting client manifests a reliable, lightweight, durable assortment. This high quality characteristics to be provided for the cost of a product.

Consumers and traders are counting on the new formats of cooperation. This includes storage, long delays in conjunction with the consignment, retro bonuses. Customers important set of high level of service, convenience, speed and lending. The market is gradually replacing the suppliers who are unable to work and provide the required conditions.

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