Category: Новини

“Ukrzaliznytsya” are charged with prescribing the conditions for tenders for the sale of scrap metal under “Interpipe”

The leadership of the Ukrainian Association of secondary metals and resources (Watermattress) accused of PJSC Ukrainian Railways in the drafting of the terms of sales accumulated at the enterprises of railway scrap through an electronic system with a priority right of purchase of metallurgical enterprises of the country in the interests of the pipe and wheel company (TAC) Interpipe (Dnipro).
The corresponding letters, copies of which are available to the Agency Interfax-Ukraine, Watermattress sent 14 April, the Cabinet of Ministers of Ukraine, Ministry of economic development and trade, the Ministry of infrastructure, Ukrzaliznytsya, the state office of public Prosecutor and the National anti-corruption Bureau of Ukraine.
The letters argued that PAO Ukrzaliznytsya organized through its Center for manufacturing to conduct two tenders for the sale of 25 of April of the current year a total of 46 thousand tons of scrap metal at corruptional scheme.
The company, which are not of metallurgical enterprises that are not allowed to participate in the contest.
Created blatant attempt breaking the current law to remove competitors from participation in the auction and the unlawful reduction in the price of bidding for scrap, and thereby causing losses as PAO Ukrzaliznytsya and the state. Moreover, PAO Ukrzaliznytsya provides for two possible options of the contract that significantly different terms of payment. So, a 50% Deposit provided by those steelmakers who are suppliers of products to Railways. For other possible bidders 100% payment. This condition is openly spelled out for PJSC Interpipe, which supplies wheels for Railways. All of the other potential bidders are put in the worst conditions, stated in the letter of Watermattress.
The Association of samoborsko urge to investigate openly corrupt collusion and punish the perpetrators.
As reported, PJSC Ukrainian Railways put up for sale via tender two lots of scrap of ferrous metals by volume of 24 thousand tons and 22 thousand tons under in pursuance of an order of the Cabinet of Ministers of Ukraine of Protocol Commission of the Supervisory Board of the company on the implementation accumulated at the enterprises of railway scrap through an electronic system with a priority right of purchase of metallurgical enterprises of the country.
As reported, Ukrzaliznytsia in the bidding information, the auction organizer, OOO TAB SA.
The initial price of sale of first lot (24 tons) 122,760 million UAH, or 5,115 thousand UAH per ton, the second lot (22 thousand tons) 116,930 million UAH, or 5,315 thousand UAH/ton.
The deadline to participate April 21, 2017, inclusive, the date of trading 25 APR, minimum bid increment of 1%.
Guarantee payment of the participants 10% of the original value of the lot.
In accordance with the attached list of documents in the tender can participate in specialized metallurgical plants.
Ukrzaliznytsia proposes two possible options for agreement, which are conditions of the advance payment: 50% for enterprises, which will provide copies of the contracts confirming that the metallurgical is a supplier of products for Railways and enterprises of railway transport of Ukraine for the past three years, 100% for steelmakers who had not supplied products to Ukrainian Railways for the last three years.
In addition, it was reported that the Cabinet of Ministers of Ukraine on 1 March of the current year gave a legal assignment to the Supervisory Board of PJSC Ukrainian Railways to consider implementation of the accumulated at the enterprises of railway scrap through the electronic system with the preferential right of purchase by the metallurgical enterprises of the country.
A proposal at the meeting of the government made by the first Deputy Minister of economic development and trade of Ukraine Maksim Nefedov. However, he noted that the Protocol decision is entered based on the Tuesday's meeting with metallurgists under the leadership of the Prime Minister about the provision of domestic metallurgical enterprises in scrap metal.
The results of the meeting of the Supervisory Board of PJSC Ukrainian Railways to protect the interests of enterprises of domestic steel industry to consider at its meeting the issue of implementation of the scrap using electronic systems providing benefits to (buy if) to domestic enterprises, read out the draft decision M. Nefedov.
In addition, it was reported that the head of the Board of PJSC Ukrainian Railways Wojciech Balczun said that in the year 2107 Ukrzaliznytsia starts selling scrap plans to sell 130 thousand tons.
Previously, experts estimated the total inventory of scrap Railways at the level of 400-450 thousand tons.
Interfax-Ukraine

Blank scrap in Ukraine dropped to the lowest level

It makes almost inevitable the next round of struggle for this important for Ukrainian metallurgy the resource because any significant prerequisites for increasing the scrap collection at present does not exist.
According to the information of enterprise GP in the past year, the blank scrap in Ukraine amounted to only 3.5 million tons. And then they played serious battle for this precious resource, without which it can not do any single steel mill. Most dependent, of course, the steelmaking enterprises: they have to produce a ton of steel you need 1.1 tons of scrap metal. But when smelting a ton of steel in the Converter is necessary to spend on average 230 kg of scrap.
Faced with an acute shortage of scrap metal, metallurgists were able last year to increase the export duty from 10 Euro/ton 30 Euro/ton, but the victory was not easy for them. As you know, the first time the Verkhovna Rada adopted a bill to raise the export duties in April, but then this initiative has faced a presidential veto Petro Poroshenko has opposed the proposal to set a higher fee for a period of three years, after which the metallurgists. The Parliament agreed with the proposal, a second vote was held in July, but the President signed the law in September.
Thus, from September 15 this year, the toll may again fall to the level of which absolutely restrains the flow of domestic scrap to the Turkish steel producers. Recall that the rapid growth of export of scrap metal occurred in 2014 when the supply of this raw material abroad has grown in 3,5 times to 876 thousand tons. In 2015 abroad left 1.212 million tons of Ukrainian scrap metal. The increase in fees, lawsuits metallurgists, as well as the increase in purchase prices above export parity has allowed to reduce the export of scrap metal at the end of last year to 272 thousand tons.
The head of the parliamentary Committee on industrial policy Victor Galasyuk emphasizes that adopted the law on increase of export duties and introduction of zero duty on import of metal scrap has a positive impact on the market. If scrap exports in 2016 was on the level of 2015, more than 1 million tons, it would be a disaster, because it is a third of the total consumption of scrap in Ukraine. When you save the export of scrap at the level of 2015, the metallurgists would have been forced to suspend output and lay off workers. And hundreds of millions in tax revenues and a significant loss of foreign exchange earnings for the country. Thanks to the toll the disaster was averted, – said the politician.
The General Director of metallurgical plant Zaporizhstal Rostyslav Shurma said that the increase in export duties made it easier for the enterprises of mining and metallurgical complex procurement of scrap metal. Nevertheless, even the increased supply did not cover the need for steelmakers to scrap. Despite positive developments, the market there is still a shortage of strategic raw materials, – said a top Manager.
In January-February 2017 the export of scrap metal, and even increased compared to the same period last year by almost 78%, but remains at a low level in the first two months abroad took only 17.8 thousand tons. During the same period, according to the Association of enterprises Ukrmetallurgprom, scrap deliveries to domestic steel plant increased by 32% compared to the same period last year, to 450 thousand tons. However, this was only 74% of the needs of enterprises. Thus, the Ukrainian steelmakers continue to have a powerful hunger, though not so acute as in 2015.
Ways of satisfying this hunger several. In particular, companies were forced to replace scrap liquid cast iron or gorjachebriketirovannogo iron, but it had a negative impact on the cost of the final product. Another solution is import of scrap metal. Until 2013 one of the main suppliers of the raw materials for Ukrainian producers were Kazakhstan, but today the supply from that country is not due to local government imposed a ban on scrap exports. But last year the import of scrap metal has increased compared to 2015, more than 9 times, to 43.2 thousand tons.
Since the beginning of the current year the importation of foreign scrap is growing steadily. For the first two months of this year, supply growth amounted to 63.2%, to almost 7 thousand tons. According to the forecast of the pipe and wheel company Interpipe, in 2017 for the first time Ukraine will become a net importer of scrap metal (that is, supplies from abroad exceeds the Ukrainian export).
It is worth noting that this news is positive for the scrap metal collectors. According to the forecast of Interpipe in the current year, the Ukrainian domestic scrap prices are above export parity with the Turkish price with the exception of short periods of peak demand in the country. In this case, the metallurgists will have to compete for his purchase not with exporters of scrap, and with each other that will make the scrap more economically attractive.
In turn, the Deputy Director of the state enterprise Yury Dobrovolsky predicts that the price of scrap metal in the domestic market is likely to fall compared to last year or will not be significantly higher. In particular, the expert drew attention to the stop of the Alchevsk metallurgical plant and the yenakiieve iron and steel works. Before the blockade we predicted that this year we will have growth of steel production at 0.8-1 million tons. Now stop the two plants is approximately minus 3.5 million tons of steel. That is, even if the others will increase production to 1 million tons or 1.5 million, the result of the fall in steel production will be about 2 million tons, – said he, stressing that the decline in output will lead to a drop in demand for scrap, which in turn will put pressure on prices. Yu. a. Dobrovolsky added that lomozagotovki could help greater growth of prices for scrap and metal products in foreign markets. But, most likely, growth will be modest, so the steelmakers will not have the financial capacity, to significantly raise the procurement price in the domestic market, – says the Deputy Director of the PEO.
According to Yuri Dobrovolsky, increase lomozagotovki in Ukraine in the first place could contribute to the growth of production in mechanical engineering, but in this sector of the economy in the current year, we can hardly expect a major breakthrough. Estimates of UPE, the total metal reserves of the country comprises about 600 million tons of metal, the structure of which approximately 390 million tons, or 65% is completely worn out metal. The lack of investment and renewal of fixed capital of the country does not allow to obtain a potentially existing volumes of scrap metal. And since no large-scale infrastructure upgrades no metalloloma will collect what nedolovili last year – predicts Yuri Dobrovolsky.
Most likely, this year lomozagotovki in Ukraine put another record. According to the forecast of Interpipe, the scrap will be reduced to 2.9-3.1 million tons, respectively, the expected shortage of scrap will be about 1 million tons. It is logical that amid such an acute shortage of metallurgists will stand for the renewal of the export duty at 30 Euro/ton.
Some factions of the Ukrainian Parliament have expressed the willingness to maintain existing restrictions on the export of scrap. While in Ukraine, fully not work machinery, not to start implementation of large-scale infrastructure projects, scrap metal is not enough even for the needs of domestic consumers. This deficit must be overcome, including government policy measures. Need metal the defense industry, engineers, the car builders, shipbuilders, the aviation industry, the builders. Besides continuing the ATO, particularly exacerbates the challenges for defence and industry. Therefore, the faction of the Radical party insists that the increased fee is necessary to maintain and continue, – stressed the head of the parliamentary Committee on industrial policy.
This V. Galasyuk expressed confidence that the reduction of export duties to the level of 10 Euro/ton will result in increased scrap. He drew attention to the fact that the source of the scrap are industrial or household metal products, which fail or waste metal-working industry. That is, the formation of new scrap is directly related to how much metal has been consumed in previous years, he stressed.
The MP referred to the data of the British company CRU Independent Authority, which has estimated that since 1991 Ukraine has consumed 168 million tons of steel. At the same time scrap during the same period, according to the OP Ukrmetallurgprom amounted to 148 million tons. The volume of steel consumed is almost equal to the volume of prepared scrap. The last 20 years in the scrap is the amount of steel that can be compared with consumption. And the new scrap does not accumulate. So now the main factor influencing the amount of harvesting of this raw material in the country, is not a duty, and the volume of domestic consumption of metal reserves, which because of the wrong government economic policy today is critically low. Ukraine needs a large-scale program of modernization upgrading and development of infrastructure and industry, – said V. Galasyuk.
Slightly smooth powerful hunger can exit the uz to the scrap market. According to various estimates, the company has reserves of scrap from a low of 300 to 450 thousand tons. In addition, the scrap must be proved unnecessary for the Navy an unfinished missile cruiser Ukraine, but the cardinal problem of the shortage of scrap is, of course, will not solve.

Production of steel products in the first quarter decreased by Ukraine

According to preliminary data of the Association "Ukrmetallurgprom", in the first quarter of 2017, Ukrainian metallurgical enterprises produced 5,596 million tonnes of steel and produced 4,909 million tons of the total rent. The decline in the annual ratio is 8%, reports "Interfax".
In March, Ukrainian steelmakers produced 1,783 million tons of steel and 1,571 million tons of metal.
Manufacturers of steel pipes Ukraine increased its figures by 32%, releasing in January-March 2017 0,244 million tons. In March, the production of pipes made of 0.085 million tons.

Aluminum war: USA vs China

The US plans to make a formal complaint to the WTO on China, which, according to Washington, to the detriment of the aluminium industry, the US is subsidizing its producers, told the publication The Wall Street Journal. In 2015, aluminium prices dropped by almost 20%.
The administration of outgoing President Barack Obama plans on 12 January to make a complaint to the WTO on China for subsidising its aluminium industry, with the result that the aluminium producers in the United States suffer losses, writes The Wall Street Journal, citing informed sources.
According to the publication, the complaint will indicate that Beijing highlights Chinese aluminium producers government loans at artificially low interest rates, which greatly facilitates the process of modernization and allows you to increase the volume of production. Also, the U.S. accuses China of subsidizing aluminum production by providing producers of coal and electricity at low cost, noted the sources of the newspaper.
China is the largest aluminium producer in the world. By the end of 2015 he had 55% of global metal production — 10 years ago the figure was 24%. For comparison: in 2015, the United States accounted for 2.7% of world aluminium production, data from the U.S. Geological survey (USGS).
"When China illegal reduces the production cost, have to pay for it workers and producers of Ohio. Thousands have been left without jobs due to unfairly subsidized Chinese aluminum, which flooded the markets and led to oversupply. It's time to take tough measures, while not suffered even more Americans," said the Senator from Ohio (USA) Sherrod brown.
In 2015 the aluminium really cheaper. From 4 January 2015 until 3 January 2016 the cost on the OTC market (CFD) decreased by 18% to $1488,5 per ton. However, since the beginning of January last year and January 12, 2017 (day), its price rose by almost 19% to $1782,75 per ton.
U.S. trade representative Mike Froman, who deals with the complaint, as well as the press-Secretary of the Chinese Embassy in Washington did not comment on the WSJ this question.
Strengthening of trade disputes
The complaint will be another milestone in the history of trade disputes between the first and second largest global economies, it will be submitted a week before the inauguration of Donald trump, which will be held on January 20, continues the WSJ.
The US President-elect during a press conference on 11 January said that trade relations with China will be the number one priority for his administration. He noted that the US has too large a deficit in the trade balance with China.
In November 2016 the trade deficit of the US rose 6.8% to $45.2 billion, which was the highest figure since February last year. The largest trade deficit the US has with China of $28.4 billion.
During the election campaign trump announced its intention to declare China a currency manipulator for the artificial undervaluation of the yuan to give advantage to Chinese exporters. He also promised to impose duties on Chinese goods in the amount of up to 45%.