The further fall of the world steel and iron ore prices could result in Ukrainian metal works stopping operation.
According to Metinvest CEO Yuri Ryzhenkov, if China iron ore prices fall to $30-40 per ton, Metinvest will have to close its iron and steel works.
At present the group uses its exports potential to the limits – it supplies iron ore to Europe and Turkey.
“We also plan to sign an agreement with a Turkish metal company for Q1 2016”, he added.
But if steel prices continue falling, the group will have to shut down its metal capacities.
“There would be no other way, we would have to close something”, he said, noting that situation could worsen not only because of the unfavorable world market situation, but because of local factors as well, fiscal pressure and tariffs increase in particular. (Ukrainian metal)