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galvanized steel sector - whether over-coming

21 March 2016

This highly topical issue discussed in anticipation of the March Conference on galvanized rolled. To date, the various stages of the projects being implemented in seven ANGTS Russia. Their combined annual production capacity of 2.6 mln. Tons. However, demand for galvanized products continues to decline. Due to the economic downturn in 2015, the demand amounted to about 2.95 million. Tons. However, the optimistic mood prevails in the assessment of the situation. Market participants actively support the suggestion that overproduction can be avoided. We are talking about galvanized steel and rolled coated polymers. This opinion is based on the active expansion of import substitution. In 2015, its share in the Russian flat steel sector reached about 20%. In the paint sector index reached 27%. This relatively 2014 decreased volumes purchased abroad. Most likely, this trend will be maintained.

Some doubts are expressed relative to the total import substitution in the long term. Sensible part of such products provided high-quality automotive steel. This is followed by China to tackle the Russian enterprises with investments from China. It is also necessary to take into account China’s cheap products. One is very competitive in some regions of Russia, given the great benefit of logistics.

True, we should not dismiss the possibility of a rapid expansion of demand for galvanized steel. So much so that it will exceed its production. Judging from the discussions held at the conference, the prerequisites for such a forecast are available. Anticipated increased use of thin-walled galvanized steel structures. It is taken into account, and the further development of the production of sandwich panels in 2016. However, these optimists are not so many. Most likely, the excess capacity in the galvanized steel sector will take place. Maintaining the stability of the Russian market of galvanized products may contribute to the restriction proposal. sheet metal Leading manufacturers are planning to export surplus galvanizing. Consumers will supposedly non-CIS countries. some preparatory processes already underway in this direction. It stipulates the possibility of reducing the release in the event of excess capacity on the part of small companies. It is they who are most dependent on the supplied rolled, which increases their vulnerability.

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