Ukrainian Metallurgists Federation and Metal and Miner Union have addressed the President Petro Poroshenko asking him to prevent implementation of the new railroad transportation tariffs and review the balance of scrap procurement and local consumption for 2016.
“Ukrainian metal industry is in the worst situation for the last 15 years. In 2015 steel output totaled 23 million tons, down by 29% as compared with 2013. Export prices fell by 40%. Metal prices are down 3-4 times. The industry is on the brink of extinction, and has been generating multibillion losses for several months”, said the metal makers in their letter.
According to them, not only doesn’t the state help the industry, it even takes actions that are really far from the state interests. In particular, the increase of the railroad tariffs and the new balance of scrap.
“The balance doesn’t take into account the views of local metal makers as to its unrealistic suggestions on scrap procurement and consumption. In January-February scrap supply to works decreased by 53% YoY, while the Ministry of economical development and trade believes it will grow by 7%. This leads to the hand-made shortage of scrap, vital for local metal industry”, said they.
This will lead to the further steel output drop, decrease of personnel and income.
So the Federation and the Union have asked the President to take actions and to prevent the signing of decree on railroad transportation tariffs increase, as well as to review the scrap balance. (Ukrainian Metal)