Ukrainian metal situation will be difficult until the ineffective capacities in China close down.
“Steel prices are low because of the overproduction and the not so fast increase of demand. That’s a classical story of boom-and-bust, resulting in ineffective capacities shutting down”, said the economic development and trade minister Aivaras Abromavichus.
According to him, in 2008 rebar price was $880 per ton, in 2011 – $750, and now it’s $325.
It should be noted that in January-July Ukrainian ferrous exports earnings fell by 41% YoY, to $5.06 billion. (Ukrainian metal)