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Dneprotyazhmash in 2020 expects a fall in sales of mining and metallurgical products by approximately 14%

Ukraine / Engineering

Orders from the extractive industry grew by almost a third, while orders for coke plants, ferrous and non-ferrous metallurgy plants decreased by 8%, 20% and 74%, respectively.

Dneprotyazhmash in 2020 expects a fall in sales of mining and metallurgical products by approximately 14%

JSC "Dneprotyazhmash " (Dnipro), which is part of the research and production company "Dneprotechservice ", by the end of 2020 expects a decrease in sales of mining and metallurgical products by about 14% compared to 2019, while in the second half of the year, this indicator is expected to increase by 15% compared to the first.

"In the first half of the year, " Dneprotyazhmash "reduced sales of such products in monetary terms by 15% compared to the same period in 2019, but we see that in the second half of the year we will be able to somewhat level the situation and increase sales by 15 This will not be enough to surpass the results of last year, but the positive dynamics of recent months cannot but rejoice, "- said Vyacheslav Pronsky, the company's marketing director, to the Interfax-Ukraine agency.

In terms of operating results, he noted that the year was hardly successful.

"If we abstract from the pandemic, we believe that we have not reached the targets set at the beginning of the year. However, if we take into account the objective factors that the industry and our customers faced in 2020, we managed to achieve , with what we approach the coming year, then there is clearly more optimism, "he said.

Analyzing the situation during the year, Pronsky noted that in January-June the plant significantly "lacked " in relatively simple and quick orders for products with minimal machining (slag bowls, ladles, molds, blast furnace cooling plates, etc.) but did a good job on complex orders that are more demanding in terms of design and technological solutions.

"As a result, despite the coronavirus pandemic, the plant was able to implement a record number of large projects over the past 5 years: this year we plan to include 2 coal loading machines, 3 car dumpers, 3 crushing and milling machines, 1 car pusher, 3 metallurgical pushers. , 1 steel carrier, 2 cast iron carriers and 11 slag carriers, "he noted.

At the same time, according to the CMO, success has to some extent been helped by the fact that many of these orders have moved to 2020 from the 2019 agreements.

"In general, this year our customers (98% of our orders are for the mining and metallurgical industry) were not very generous with orders, saving both on capital investments and, where possible, on operating costs. This, in turn, is explained by the global crisis caused by the coronavirus pandemic and a number of structural problems in the industry, including an excess of production capacity in the world and an excessive influence on the market of Chinese steel producers, "Pronsky explained.

The top manager also noted that in 2020 DTM saw an increase in orders for mining enterprises (GOKs and open pits) - by almost a third, as well as for enterprises related to coal and energy - by 400%. At the same time, orders for coke plants, ferrous and non-ferrous metallurgy plants decreased by 8%, 20% and 74%, respectively.

Pronsky said that due to a reduction in orders this year, DTM faced the need to reduce product prices, especially in the first half of the year.

"The decline in prices was due to the " hunger "of machine builders, when orders were taken at almost any cost - if only they were and there was work. In this situation, we were greatly helped out by complex and high-tech orders for machines and mechanisms. But now we see some growth in prices for casting and spare parts, "he said.

The decline in prices primarily affected products made of steel and iron casting. In particular, in the first half of the year, the average price of spare parts for coke oven batteries (frames, armor, doors) fell from UAH 182 thousand to UAH 125 thousand compared to prices in 2019. (excluding VAT), and their share in total sales amounted to 17% (versus 18.4% in 2019).

The average price of slag bowls fell by almost 30%, while only 30 units were sold in the first half of the year, while in 2019 - 147 units. (17% of sales).

"But in November-December, we observe a significant increase in prices (for some items up to 40%) for the main raw materials we purchase: rolled metal, steel and cast iron scrap, ferroalloys, molding materials, as well as energy. All this is inevitable will lead to an increase in prices for the products of machine builders. As a result, already in the first half of 2021, we predict that prices will catch up and even overtake the prices of the beginning of 2020 ", - suggests the Director of Marketing.

In addition, he noted, measures to counter the spread of coronavirus "cost " the plant about 1 million UAH per month.

"As for further lockdowns, we do not think that they will be more " severe "than this spring, when our enterprise was operating almost as usual. Yes, it was unusual and alarming, we had to introduce a wide range of measures, but there were no disruptions in the work of the enterprise. And there will not be, we hope, "- he summed up.

DTM was founded in 1914, has a full production

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