This year Dneprospetsstal has faced the increased competition on world markets because of the drop of demand and imposition of limits on deliveries.
According to far foreign countries sales director Konstantin Moroshkin, in the past three years the market situation was favorable. The demand for DSS products was quite high.
But in 2019 the situation has worsened. The main consuming industries, namely car manufacture, are in decline, and the customers try to decrease their stocks. The drop in demand results in the increase in competitiveness, and in order to profit it is necessary to decrease prices.
“Unfortunately, the company uses outdated machinery and techniques, and our expenses are higher compared with other companies”, he said.
The situation worsens still more because of trade limitations on exports. Thus, Turkey still has a 25% duty on metal imports from Ukraine. And the 25% tariff imposed by US has also resulted in the loss of a considerable number of orders on the market.
In January-May, DSS produced 61.4 thousand tons of rolled metal and 90.6 thousand tons of steel, down by 14.2% and by 15.6% YoY respectively. (Ukrainian metal)