Ukraine: metal prices to fall in 2016
Despite the free trade zone with EU, in 2016 demand for Ukrainian metal on world markets will continue to decrease.
Despite the free trade zone with EU, in 2016 demand for Ukrainian metal on world markets will continue to decrease.
In 2015 industrial product prices increased by 25.4%.
Metinvest-SMC, the Metinvest metal center network, believes rolled metal consumption in 2016 would increase by 2.6% YoY, to 3.35 million tons.
In October industrial products price index totaled 97.6% as opposed to 102% in September. This is without the temporarily occupied territories of Crimea and the ATO zone.
According to the Ukrainian Federation of Metallurgists, the state owes 7 billion UAH of unpaid VAT to the mining-metallurgical complex of Ukraine.
The majority of mining and metal companies in Ukraine have been on the verge of bankruptcy since 2014, which they managed to avoid only thanks to the devaluation of the national currency and the improved competitiveness of Ukrainian products on foreign markets, Metinvest CEO Yuriy Ryzhenkov said.
The pretax losses of Ukrainian metal companies (negative financial results from ordinary activities before taxation) rose by 84.4%, to UAH 22.5 billion, from UAH 12.2 billion as of the end of 2014, according to preliminary data.
Ukrainian government has shortened the list of metal wares the export and import of which has to be licensed.