experts predict that the Russian steel mills with the further recovery of the steel market demand next year, and before the opening of the acquisition of production facilities and resources, the pace of development will be further improved, and can achieve greater growth in profitability.
equipment innovation:
Russia's biggest steelmaker, Severstal (Severstal,) the second quarter of this fiscal year revenue by 35% up to $ 4,245,000,000. Largest shareholder Alexey Mordashov said revenue growth in the second quarter thanks to the structural integrity of the company's assets, as well as global markets pick up, especially the growth of the Russian market is very obvious, the company is ready to seize new market opportunities.
Russian steel mills can rely on an effective price policy to form a monopoly on the market, compete against China and other foreign steel mills. Steel products in other countries to enter the Russian market due to import quotas, tariffs, transport costs and other reasons, subject to certain restrictions and increase costs. Analysts pointed out that the Russian steel industry is a haven to avoid global economic shocks, and the downstream industries such as construction, industrial engineering and pipe industry demand potential, so that foreign investors are very interested in the Russian steel industry investment.
the Russian Ministry of Industry and Trade forecast that the 2010 Russian steel mills used to modernize aspects of the investment will exceed 159 billion rubles in 2009, reaching 160 billion rubles. Russian iron and steel in the first half of this year has been to attract investment of 60 billion rubles to the investment in the steel industry in 2015 will reach 200 billion rubles.
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Russian steel mills are stepping up overseas mergers and acquisitions, and fight for a place in the global market. Mechel is the negotiations on cooperation with the the Cosipar Group of Brazil World Pipe network informed. Severstal plans to acquire Norwegian IntexResources shares to billion tonnes of reserves of nickel ore in the Philippines to benefit from the latter, another Severstal is also considering iron ore acquisition in Africa.
overseas investment:
but compared with other developed countries, Russia currently do not have the sound of steel products wholesale distribution conditions. Russia's three main steel producing areas, the steel trade of the central regions of Russia, the Ural region and Siberia rely mainly on local trading companies, non-franchised brokers or metal traders to complete, and the highest above the volume of trade was also only the total steel market one-third. Steel mills also rely on the direct supply contract signed with the automotive and other downstream industrial users as an important marketing tool.
overseas markets:
the domestic market:
Russia as a steel exporting countries, each year about 60% of the exports of steel products to overseas World Steel Pipe News . 2008, the eve of the credit crunch, the strong growth of domestic demand in Russia will not only make the steel to a substantial release of capacity, but also make steel exports fell by about one-third. Until 2009-2010, due to the increase of China's steel exports, the proportion of exports accounted for domestic production back to the 50% -60%. According to data released by the Russian Ministry of Economic Development, 2010, Russian steel exports up by 28.5 percent, to 28.45 million tons. Among them, steel exports up by 22.7 percent, finished products exports by 2.5%, iron products, exports by 11.1%. Statistics, are mainly exported to Russia of Ukraine's exports in total exports in the first half of 2010, 12.7%, China accounted for 9.5%, Italy 7.6%, Iran 6.3%, Switzerland 5%, Germany 3.5%, South Korea 2.8%, Turkey 2.5% , Denmark 2.2%, Kazakhstan (2%).
addition to Severstal outside, Russia Maanshan Iron & Steel (MMK), Evraz (Evraz) and other Russian steel company in the near future also had a strong showing. Russia Maanshan Iron & Steel this year's second quarter turnover up by 25 percent in the first half of Evraz revenue increase of up to 37%. Fitch Ratings (Fitch Ratings) also raised the expectations of the three Russian steel mills, and that the next 2-3 years, several Russian steel company in the operational and financial aspects but also to be seen. Compared with the global steel industry, 75% -80 capacity utilization level, the majority of Russian steel capacity utilization close to 100%, Fitch believes that this may be the Russian macroeconomic recovery and devaluation of the ruble.
modern Russian domestic steel market by several large steel rule. Market share in the first half of 2010, statistics show that 16% of the total market share of Mechel 'products; Evraz accounted for 10%; MMK and the new Russian Steel (NLMK) each accounted for 15% and about 30% for other small steel mills occupied. If steel prices are 550-570 U.S. dollars / ton, the Russian steel market value of $ 418-433.2 billion U.S. dollars.
the same time, the Russian iron and steel enterprises are still diversified operational aspects with the attempt. Severstal, according to a major strategic plan, increase the stake in CrewGold gold mining company, hopes to strengthen the company's strength in the gold mining industry. Russia Maanshan Iron & Steel to accelerate the integration of newly acquired Belon Coal Company's assets, and strive to put into operation as soon as possible. The analysts believe that vertical integration strategy can be used by the Russian steel to provide a solid foundation for enterprises to benefit the long-term sustainable growth, Severstal and Evraz is using the principles of development effort to create a complete value chain.
After the baptism of the global economic shocks, the steel industry also highlights a new trend of development, that is, steel mills need to increase its share of high value-added products, such as coated steel, special steel products. In this regard, Russia Maanshan Iron & Steel has put into its latest 5000 mill, this Europe's largest mill, high strength steel with steel pipes can be used in the manufacture of oil and gas industry. Severstal plans a one million tons of annual production capacity of the architectural, material production line put into operation in 2013.