Zaporizhstal could lose 20-30% of its orders if the railroad transportation tariffs are increased by 15%, as the orders will become unprofitable and below their prime cost.
“I won’t say we will halt, but we would have to drop some 20-30% of our orders”, said the company CEO Rostislav Shurma.
According to his words, each day Zaporizhstal receives dozens of new orders. And every time the management has to decide whether to take them or not, as most of them are on the edge of prime cost.
“Under such conditions most companies can live for 3 months”, he added.
Railroad tariff takes up 3-4% in the metal cost price, or $5-6 per ton after the increase.
“And these $5 will make 30% of our orders unprofitable”, Shurma said. (Ukrainian metal)