Domestic demand for construction products grades fell many times, but domestic metallurgists unable to meet these requirements too low.
Building market not only himself sank almost no deeper than others in Ukraine, but also pulled a related market. The volume of construction back to that of 2006, as compared with the results of 2008 in 2009, his fall will be at least 50%. After an unprecedented growth in 2007-2008. This decline is quite sharp, - says Roman Zheltyannikov, Senior Engineer of Production department of the Óêðñòàëüêîíñòðóêöèÿ.
However, developers of residential and commercial buildings are confident that they had reached bottom and fall on it's nowhere. However, there are far more pessimistic assessment of the construction realities. According to the forecast Nikolai Tolmachev, CEO of TMM, the volume of construction in 2009 will decrease by 3-5 times compared with last year.
Naturally, demand for the metal for the needs of Ukrainian architects in such circumstances can not be sustained at the level of last year. By 9 months of 2009 the demand for steel products assortment of construction fell by 40-50% over the same period last year. Even a substantial reduction in the price of it is not underpinned the growth of demand, - says Mr. Zheltyannikov.
note that the cost of steel constructions at the end of September 2009 fell by an average of 15-30% (UAH equivalent), compared with September 2008, as compared with the mid-August 2008, when the market had the highest prices for metal building sizes, - and all 40%.
    According to the company UMMC, for January - August 2009 domestic consumption fixtures in the country decreased by 61% to 327,7 thousand tons, a beam - a 70% to 25,1 thousand tons; and the corner of the channel — 56% to 101,9 thousand tons and 86.3 tons respectively.
same situation in the regions. The market Kharkov metal consumption declines in sales on average by 2-3 times. The demand for the construction metal due to several factors, chief among them being - lack of credit and reduction in the construction industry in the region, - says Sergey Bocharov, sales director Tubes rolling LLC RTC Trade. - According to our calculations, the demand for steel products assortment of construction will quicken until spring next year. Some builders set aside a possible revival of the construction sector, and accordingly, and the demand for the metal stroysortamenta until the second half of 2010 (see Builder - a revival of on page 58).
Renewal
However, some recovery in the market could be seen in the early fall that was due, however, does not increase the activity and ability to pay end-users. In August-September 2009, demand in the market perked up due to shortage of certain types of rolled metal constructions. At the heart of this revival was the fear of metal traders remain scarce sizes without rolling. A real improvement in demand from end-user did not happen - is the situation Ruslan Mazhinsky , marketing director of JSC UMMC.
Due to the stop of the rolling mills in steel mills on the market there was a shortage of wire rod and some types of valves. In addition, the shortage was caused by the fact that a lot of production is exported. If the pre-crisis times to foreign markets fell 75-80% metal produced in Ukraine, but now, according to various estimates, 80-85%. Internal Market dipped is much stronger than the external, - says Mr. Bocharov.
 Â
While the deficit has not disappeared. The stock traders are almost no products, all are supplied with wheels, - says Mr. Zheltyannikov. - If last year traders supplies on credit, but now everyone is working only on a prepaid basis, and quite possible violation of terms of shipments by suppliers. All the plants primarily serve the export orders, and only then the application of domestic consumers. Even large retailers are only half of ordered metal and then sometimes with considerable delay.
   Â
artificially creating a shortage on the Ukrainian market, metallurgists from the end of the summer started to raise the shipping prices on some types of metal. According to GP ДержзовніÑˆіÐ½Ñ„орм, price increases will continue in October. So far, at least, they continue to grow. Over the last two weeks of September went up by valves 300-500 UAH. to 1 m, and wire rods - at 350-550 UAH. to 1 so interesting that the increase in the metallurgists of prices sparked excessive demand on the part of traders who wanted Zatar their warehouses until the rental has risen in price even more. Steelmakers also in response to increases in orders (which do not always correspond to the volume of purchases) would raise prices on other types of building rolled. Corner of 25-75 mm and the beam number 10 and number 12 for the last couple of weeks have jumped in price by an average of 250 UAH. to 1 m, beam number16 and number 18 - to 70 UAH. to 1 m, channels - for 180 days. to 1 t.
  Â
But the increased price of certain types of fixtures (such as a diameter of 8-10 mm and 24-32 mm) in Ukraine afternoon with fire not find. Therefore, analysts ДержзовніÑˆіÐ½Ñ„орма forecast of October the further growth of prices for long products steel plant, and after them, according to experts, brisk and metal traders, who will raise their prices in November.
   Â
Nevertheless, end users do not lose hope for a cheaper metal in the foreseeable future, quite convincing arguments justify these hopes.
In the coming months (before the end of the year) can be expected to decrease prices. For several years in a row in September and October, prices reached a peak, and by the end of the year are reduced. As a rule, after export quotas are exhausted, metallurgists pay attention to domestic market, and the deficit is replaced by an abundance of metal, which reduces its value. We expect that the same picture again and the end of 2009, - says Roman Zheltyannikov.
massive deficit
scarce in the autumn were not only fitting with the rod, but flat-rolled and coated sheets, used in the manufacture of corrugated board and some assembly of products. The fact that demand for steel coated in Ukraine is mainly met by imports (there is only one manufacturer produces rolling with a polymer coating, and another - galvanized steel), the volume of which has declined significantly. According to the company UMMC, for 8 months of 2009 imports of hot-rolled sheet fell by 87,5%, cold - by 67,8%, zinc - by 51.8% compared to the same period last year.
   Â
According to Sergei Grishchenko, CEO Profstal high dollar transactions made with the import for traders profitable. And the power of domestic producers is insufficient to meet even this low demand, it is now. At the same time the builders say that as far as possible replace the missing imports Ukrainian counterparts.
Domestic metal in any case cheaper. Even if the project laid the assortment of some species that are not produced in Ukraine, in most cases it is replaced and adapt the project to hire domestic counterparts. In very small quantities of metal sometimes used in Russia, If the designer categorically refuses to replace it. In other cases, the acquisition of imports requires too many additional costs (including temporary) on transportation and customs clearance , - says Mr. Zheltyannikov.
Â
Â
Consumer - the deficit
Sergey Grishchenko, CEO, Profstal :
  Â
- Current year can not be compared with previous ones. Earlier in all areas of production has seen steady growth, there are currently some areas have grown, while others have fallen. For example, significantly reduced sales of corrugated board in connection with the fall of Ukrainian construction market, but sales rose reinforcement amplifier for plastic profiles for windows and drywall systems due to steady demand of retail consumers.
  Â
view of some recovery in the market, now there is a shortage of galvanized steel and rolled steel with polymer coating. Major shipments of steel with polymer coating are from abroad (Kazakhstan, Poland, China, India), and in connection with the expectation of the appreciation of the dollar all the traders that import this type of hire, even in the summer of this year, reduced their purchases. With galvanized steel is approximately the same situation. Thus the cost of galvanized steel in foreign markets in August and September has risen significantly, making the purchase of domestically produced goods more competitive and imports - unprofitable.
Now galvanized power Mariupol metkombinata im.Ilicha (the country's only manufacturer of galvanized sheet) loaded almost completely. I think that the situation in the coming months will change. World quotes on metal have already begun to fall, which will allow traders to saturate the Ukrainian market of imported steel coated. I believe that the domestic prices of the metal in the near future, too, will not grow.
Builder
… on renewal
Roman Zheltyannikov, principal engineer of production department of OJSC Óêðñòàëüêîíñòðóêöèÿ:
- Obviously, autumn 2009 - winter 2010 will be very difficult for builders. Investors realize that rely on the inflow of investment in construction in the near future is difficult. Obviously, that has not yet revived credit market, the construction boom will not start. However, the complicated political situation in the country is an additional risk factor for investors who hold the draft before the election.
So the real recovery can be expected not earlier than the second half of 2010 There are, of course, a factor of Euro 2012, construction of facilities for which could have a significant impact on the market. But while the real work is only for individual objects, but the overall trend does not pass. Accordingly, the demand for products develops as an assortment of building one of the components of the construction market in general.
… volumes of
Nikolai Tolmachev, CEO of TMM :
   Â
- Construction output in the whole market in 2009 has fallen many times and reduced even more. Abrupt changes in the market in the near term we do not expect a price floor has already been achieved, and by early 2010 we expect to stabilize property prices. The price of real estate that prevails today, is on the verge of production costs, making it impossible to develop new projects.
In addition, given the present level of prices the investment attractiveness of many projects on the market can be reviewed. Thus, if in 2009 the demand for real estate dropped by half (prices in dollar terms has declined by half), the volume of construction will be reduced by 3-5 times.
Kudelya
Total debts of enterprises to RusHydro is 6.034 billion rubles
In 2010, ALROSA plans to cut 600 - 800
U.S. indexes are not cease to surprise investors increase their
Yesterday, the euro /dollar at the U.S. session increased with the level of 1.4842 to 1.4930
Kommersant: The Corporation expects the growth of CME's television advertising market in Ukraine
Cabinet will initiate the extension of payments assistance for partial unemployment by 2011
Recommendations for market shares: LUKoil, Norilsk Nickel, Rostelecom, Gazprom, Mosenergo, Surgutneftegaz, Sberbank
From the overheated market correction to maintain a high oil and the inflow of speculative money
Fundamentally, demand for energy by importing countries remains weak due to a buildup on the cheap stocks
Stroekratnoe fall
Domestic demand for construction products grades fell in times …
Domestic demand for construction products grades fell many times, but domestic metallurgists unable to meet these requirements too low.
Building market not only himself sank almost no deeper than others in Ukraine, but also pulled a related market. The volume of construction back to that of 2006, as compared with the results of 2008 in 2009, his fall will be at least 50%. After an unprecedented growth in 2007-2008. This decline is quite sharp, - says Roman Zheltyannikov, Senior Engineer of Production department of the Óêðñòàëüêîíñòðóêöèÿ.
However, developers of residential and commercial buildings are confident that they had reached bottom and fall on it's nowhere. However, there are far more pessimistic assessment of the construction realities. According to the forecast Nikolai Tolmachev, CEO of TMM, the volume of construction in 2009 will decrease by 3-5 times compared with last year.
Naturally, demand for the metal for the needs of Ukrainian architects in such circumstances can not be sustained at the level of last year. By 9 months of 2009 the demand for steel products assortment of construction fell by 40-50% over the same period last year. Even a substantial reduction in the price of it is not underpinned the growth of demand, - says Mr. Zheltyannikov.
note that the cost of steel constructions at the end of September 2009 fell by an average of 15-30% (UAH equivalent), compared with September 2008, as compared with the mid-August 2008, when the market had the highest prices for metal building sizes, - and all 40%.
    According to the company UMMC, for January - August 2009 domestic consumption fixtures in the country decreased by 61% to 327,7 thousand tons, a beam - a 70% to 25,1 thousand tons; and the corner of the channel — 56% to 101,9 thousand tons and 86.3 tons respectively.
same situation in the regions. The market Kharkov metal consumption declines in sales on average by 2-3 times. The demand for the construction metal due to several factors, chief among them being - lack of credit and reduction in the construction industry in the region, - says Sergey Bocharov, sales director Tubes rolling LLC RTC Trade. - According to our calculations, the demand for steel products assortment of construction will quicken until spring next year. Some builders set aside a possible revival of the construction sector, and accordingly, and the demand for the metal stroysortamenta until the second half of 2010 (see Builder - a revival of on page 58).
Renewal
However, some recovery in the market could be seen in the early fall that was due, however, does not increase the activity and ability to pay end-users. In August-September 2009, demand in the market perked up due to shortage of certain types of rolled metal constructions. At the heart of this revival was the fear of metal traders remain scarce sizes without rolling. A real improvement in demand from end-user did not happen - is the situation Ruslan Mazhinsky , marketing director of JSC UMMC.
Due to the stop of the rolling mills in steel mills on the market there was a shortage of wire rod and some types of valves. In addition, the shortage was caused by the fact that a lot of production is exported. If the pre-crisis times to foreign markets fell 75-80% metal produced in Ukraine, but now, according to various estimates, 80-85%. Internal Market dipped is much stronger than the external, - says Mr. Bocharov.
 Â
While the deficit has not disappeared. The stock traders are almost no products, all are supplied with wheels, - says Mr. Zheltyannikov. - If last year traders supplies on credit, but now everyone is working only on a prepaid basis, and quite possible violation of terms of shipments by suppliers. All the plants primarily serve the export orders, and only then the application of domestic consumers. Even large retailers are only half of ordered metal and then sometimes with considerable delay.
   Â
artificially creating a shortage on the Ukrainian market, metallurgists from the end of the summer started to raise the shipping prices on some types of metal. According to GP ДержзовніÑˆіÐ½Ñ„орм, price increases will continue in October. So far, at least, they continue to grow. Over the last two weeks of September went up by valves 300-500 UAH. to 1 m, and wire rods - at 350-550 UAH. to 1 so interesting that the increase in the metallurgists of prices sparked excessive demand on the part of traders who wanted Zatar their warehouses until the rental has risen in price even more. Steelmakers also in response to increases in orders (which do not always correspond to the volume of purchases) would raise prices on other types of building rolled. Corner of 25-75 mm and the beam number 10 and number 12 for the last couple of weeks have jumped in price by an average of 250 UAH. to 1 m, beam number16 and number 18 - to 70 UAH. to 1 m, channels - for 180 days. to 1 t.
  Â
But the increased price of certain types of fixtures (such as a diameter of 8-10 mm and 24-32 mm) in Ukraine afternoon with fire not find. Therefore, analysts ДержзовніÑˆіÐ½Ñ„орма forecast of October the further growth of prices for long products steel plant, and after them, according to experts, brisk and metal traders, who will raise their prices in November.
   Â
Nevertheless, end users do not lose hope for a cheaper metal in the foreseeable future, quite convincing arguments justify these hopes.
In the coming months (before the end of the year) can be expected to decrease prices. For several years in a row in September and October, prices reached a peak, and by the end of the year are reduced. As a rule, after export quotas are exhausted, metallurgists pay attention to domestic market, and the deficit is replaced by an abundance of metal, which reduces its value. We expect that the same picture again and the end of 2009, - says Roman Zheltyannikov.
massive deficit
scarce in the autumn were not only fitting with the rod, but flat-rolled and coated sheets, used in the manufacture of corrugated board and some assembly of products. The fact that demand for steel coated in Ukraine is mainly met by imports (there is only one manufacturer produces rolling with a polymer coating, and another - galvanized steel), the volume of which has declined significantly. According to the company UMMC, for 8 months of 2009 imports of hot-rolled sheet fell by 87,5%, cold - by 67,8%, zinc - by 51.8% compared to the same period last year.
   Â
According to Sergei Grishchenko, CEO Profstal high dollar transactions made with the import for traders profitable. And the power of domestic producers is insufficient to meet even this low demand, it is now. At the same time the builders say that as far as possible replace the missing imports Ukrainian counterparts.
Domestic metal in any case cheaper. Even if the project laid the assortment of some species that are not produced in Ukraine, in most cases it is replaced and adapt the project to hire domestic counterparts. In very small quantities of metal sometimes used in Russia, If the designer categorically refuses to replace it. In other cases, the acquisition of imports requires too many additional costs (including temporary) on transportation and customs clearance , - says Mr. Zheltyannikov.
Â
Â
Consumer - the deficit
Sergey Grishchenko, CEO, Profstal :
  Â
- Current year can not be compared with previous ones. Earlier in all areas of production has seen steady growth, there are currently some areas have grown, while others have fallen. For example, significantly reduced sales of corrugated board in connection with the fall of Ukrainian construction market, but sales rose reinforcement amplifier for plastic profiles for windows and drywall systems due to steady demand of retail consumers.
  Â
view of some recovery in the market, now there is a shortage of galvanized steel and rolled steel with polymer coating. Major shipments of steel with polymer coating are from abroad (Kazakhstan, Poland, China, India), and in connection with the expectation of the appreciation of the dollar all the traders that import this type of hire, even in the summer of this year, reduced their purchases. With galvanized steel is approximately the same situation. Thus the cost of galvanized steel in foreign markets in August and September has risen significantly, making the purchase of domestically produced goods more competitive and imports - unprofitable.
Now galvanized power Mariupol metkombinata im.Ilicha (the country's only manufacturer of galvanized sheet) loaded almost completely. I think that the situation in the coming months will change. World quotes on metal have already begun to fall, which will allow traders to saturate the Ukrainian market of imported steel coated. I believe that the domestic prices of the metal in the near future, too, will not grow.
Builder
… on renewal
Roman Zheltyannikov, principal engineer of production department of OJSC Óêðñòàëüêîíñòðóêöèÿ:
- Obviously, autumn 2009 - winter 2010 will be very difficult for builders. Investors realize that rely on the inflow of investment in construction in the near future is difficult. Obviously, that has not yet revived credit market, the construction boom will not start. However, the complicated political situation in the country is an additional risk factor for investors who hold the draft before the election.
So the real recovery can be expected not earlier than the second half of 2010 There are, of course, a factor of Euro 2012, construction of facilities for which could have a significant impact on the market. But while the real work is only for individual objects, but the overall trend does not pass. Accordingly, the demand for products develops as an assortment of building one of the components of the construction market in general.
… volumes of
Nikolai Tolmachev, CEO of TMM :
   Â
- Construction output in the whole market in 2009 has fallen many times and reduced even more. Abrupt changes in the market in the near term we do not expect a price floor has already been achieved, and by early 2010 we expect to stabilize property prices. The price of real estate that prevails today, is on the verge of production costs, making it impossible to develop new projects.
In addition, given the present level of prices the investment attractiveness of many projects on the market can be reviewed. Thus, if in 2009 the demand for real estate dropped by half (prices in dollar terms has declined by half), the volume of construction will be reduced by 3-5 times.
Kudelya
Total debts of enterprises to RusHydro is 6.034 billion rubles
In 2010, ALROSA plans to cut 600 - 800
U.S. indexes are not cease to surprise investors increase their
Yesterday, the euro /dollar at the U.S. session increased with the level of 1.4842 to 1.4930
Kommersant: The Corporation expects the growth of CME's television advertising market in Ukraine
Cabinet will initiate the extension of payments assistance for partial unemployment by 2011
Recommendations for market shares: LUKoil, Norilsk Nickel, Rostelecom, Gazprom, Mosenergo, Surgutneftegaz, Sberbank
From the overheated market correction to maintain a high oil and the inflow of speculative money
Fundamentally, demand for energy by importing countries remains weak due to a buildup on the cheap stocks