In 2017 sales volume of metal products made by PJSC ArcelorMittal Kriviy Rih exceeded 5.4 million tons, out of which 64% accounted for finished products (rebar, wire rod and sections). Sales of square billet reduced by 4% comparing to 2016, from 33% to 29%.
The considerable growth of sales was recorded in the segment of products with added value (+25%) – wire rod made of special steel grades, heat-treated and mine rebar. Over the past year PJSC ArcelorMittal Kriviy Rih developed 14 new types of products: nine types – according to the standards of domestic market, and five – according to national standards of Peru, Singapore, Cameroon, Netherlands and Chile, that enabled to enter new markets.
In 2017 customers from more than 60 countries purchased company’s products. The highest percentage of sales is attributed to Middle Eastern countries (39%), North and West Africa (16%) and Europe (8%). In spite of increase in import of metal products from Russia, Moldova and Belarus, around 20% of products were sold on the domestic market.
Last year PJSC ArcelorMittal Kriviy Rih set up two new storage areas in Kyiv and Lviv. Currently there are nine warehouses in the company distribution network in Ukraine: two each in Kiev and Lviv and one each in Kriviy Rih, Odesa, Kharkiv, Dnipro and Ternopil.
Anastasiya Tatarulieva, Chief Marketing Officer, PJSC ArcelorMittal Kriviy Rih: “The main challenges we came across in 2017 were the aggressive pricing policy of competitors on our key markets, imposition of higher import duties by a number of countries (including Egypt and USA) and logistic problems of Ukraine associated with severe shortage of wagons and locomotives that impacted raw materials supply and export of finished products. Despite the difficulties, we successfully coped with all challenges and achieved high results by changing our sales strategy. We increased exports to Europe, West Africa, Latin America and Southeast Asia, and strengthened our positions in Middle Eastern and Gulf countries. We focused on opening new markets in Indonesia, Singapore, Peru and Tanzania. In addition to that, in 2017 our products successfully passed certification for compliance to international standards of Germany, Netherlands, UK, Columbia, UAE, Saudi Arabia and Hong Kong. Steel products of ArcelorMittal got a high score in global markets. We are working on continuous improvement and respond quickly to any changes and requirements of our customers”. (AMKR/Ukrainian metal)