2 December 2015

UTK-Steel forecasts future of stainless industry

President UTK-Steel Viktor Selivanov shared information on the company's activities. Despite certain difficulties that arose in the stainless steel market, the results were quite high. The decrease in realized volumes was about 8−10%. The structure of constant consumers of UTK-Stal products remained the same. In terms of building relationships with other manufacturers, the main factor for the company is quality and competitive value. According to V. Selivanov, domestic enterprises do not guarantee these moments. Their products are designed for large consumers. In particular, for the nuclear sector, defense enterprises. Such industries, taking into account the programs on import substitution, are focused on the use of Russian products. Apparently, stainless steel producers do not show an active desire to sell products through the spot market.

UTK-Steel plans to expand the processing of stainless products. Diversification of this segment looks very promising. After 2008, the company actively invests in warehouse projects. To date, the company is building a warehouse complex in St. Petersburg. There is already a strong branch. But he is forced to rent the required space. In this issue, the main difficulty — the site, equipped with suspension cranes. There is also a lack of premises with tali, which makes it difficult for high-quality processing of stainless steel. Hence the project of a new complex, complete with the required equipment. The construction of another SK in Ekaterinburg has been completed by 95%. Expanded warehouse, built an additional warehouse. Its capacity is 6000 square meters. A project has been developed for the construction of a similar complex in Ufa.

A certain percentage of traders in the stainless steel sector talk about the created parity between deliveries. We are talking about products from the countries of Asia and Europe. V. Selivanov believes that the production list of the People's Republic of China is uncompetitive in comparison with European products. Here, the devaluation of the currency is an influential factor. Plus own market, consuming about 90% of domestic products. At the same time, he fully perceives the high cost of goods. As for Taiwanese and Korean manufacturers, the quality of their products is high enough. The cost of goods also appeals to the consumer. These qualities can be oriented, speaking about the parity of Asia and Europe.

As for the forecasts for the future, the market for stainless products is unstable. Consumers depend on loans, many of them are insolvent. According to Viktor Selivanov, there are no signs of improvement. Apparently, no changes are expected in the near future.

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