The utilization of the rail and structural section of the Mariupol metallurgical plant "Azovstal" this year is unlikely to exceed 30% of its current capacity, and one of the key reasons for this decline is the loss of foreign markets. This was reported in the press service of the plant in response to request of city site 0629.
“For a long period of time, the demand for long products remains extremely low, the rolling shops are periodically taken out of service due to low utilization. This is a consequence of the crisis in the domestic and foreign markets ", - noted in" Azovstal ".
In fact, the only major buyer of Azovstal main rails is Ukrzaliznytsya, which does not provide orders for the Mariupol enterprise due to the lack of systematic modernization of the railroad tracks in Ukraine. In addition, part of the railway infrastructure of "Ukrzaliznytsia" ended up in uncontrolled territory, as well as some large mines, which also need their own rails to equip mine workings.
Azovstal's current order book is mainly formed by external orders, which are more focused on continuous cast billets.
In connection with this state of affairs, the administration decided to change the work schedules - from continuous to five days with two days off. An intrashop enlargement is also planned - the merger of a large-section rolling shop with a rail and beam shop.
The Narodnaya Solidarnost trade union said that workers in the shops of the rolling complex (crimping, rail and beam and large-section) were informed that a significant reduction is planned in July - about half of all employees in these industries.
Recall that the world steel market today is experiencing a sharp rise in prices, more than threefold for certain items of rolled metal, and a real boom in demand for the entire range of metal products. Queues at European factories reach three to four months, depending on the type of rolled products.
IREPAS Global Association of Long Products Manufacturers and Exporters Notes the excellent outlook for the long steel market for the second quarter. “Competition in the market is healthy, but there is enough demand for everyone. Accordingly, there is no concern about competition in general. The current state of the market is ideal for rolling over very good forecasts for the next quarter, ”the association said in a recently published report.