In 2018, the volume of sales of metal products of ArcelorMittal Kriviy Rih made 4.5 million tons, with finished products accounting for 65% (rebar, wire rod and sections).
The share of square billets decreased by 2%, from 29% to 27%, while hot metal share increased to 9% (+2%).
In 2018, customers from 62 countries purchased the products of the company. Main share of sales is accounted for by the countries of the Middle East (33%), North and West Africa (17%), Latin America (9%), and Europe (7%). About 22% of products are sold on domestic market.
Anastasiya Tatarulieva, Chief Marketing Officer of PJSC ArcelorMittal Kriviy Rih: “2018 turned out to be one of the most difficult years – more and more countries closed their markets, more and more new production capacities appeared, pressure from the boost of cheap imports increased. The increase in imports from Belarus, Moldova, and Turkey significantly reduces the share of domestic producers on Ukrainian market. Accordingly, 80% of production volumes need to be sold on foreign markets, but every year the situation on these markets gets an increasingly negative trend of demand reduction and production capacities increase, aggravated by more frequent cases of imposing duties on export products. In March 2018, the President of the United States introduced a 25% duty on all imported metal product that almost completely stopped its deliveries to the United States, and that is about 35 million tons of import per year. Our main competitors from China and Turkey redirected their product streams to other regions, which further tightened and intensified competition on the markets of Europe, the Middle East, North, West and East Africa. Besides, in July 2018, European Commission set quotas for 23 categories of steel products, including 11 types of products from Ukraine (the import exceeding the quota is subject to a duty of 25%). Currently, there are almost no free markets for trade. More and more countries protect their interests, their domestic producers, therefore, selling our products – such as rebar, wire rod, sections – is a huge challenge. Under these conditions, reducing the cost of our products is of particular significance to us. The aggravation of logistic problems in Ukraine related to the acute shortage of railcars and locomotives, negative consequences of strikes and conventions at Ukrzaliznytsia and all of the above-mentioned reasons had an impact on raw materials supply and products export in 2018. Despite the large number of difficulties that arose before us during last year, we coped with all the challenges. We maintained our positions in West Africa, Latin America, Southeast Asia, in the countries of the Middle East and the Persian Gulf. We opened new directions: Bosnia and Herzegovina, Macedonia, Slovakia, Greece, Malta, Angola, Burundi, Rwanda, Haiti, Libya, Turkmenistan, etc. Metal products of ArcelorMittal Kriviy Rih were highly appreciated on world markets. We constantly improve our production, quality and service, and promptly respond to all changes on the markets and the requirements of our customers. We have already identified the main vectors of development for 2019, and Marketing and Sales service is ready for new challenges”. (AMKR/Ukrainian metal)
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