According to the Metinvest group, in 2015, the Ukrainian metal market will shrink by 15 percent. Dmitri Lippa, CEO of the network of the service centers of Metinvest, said: "We believe that the metal market will continue to decline in 2015, and will decline 15% yoy".
"In 2014 the metal market decreased by 25-30% yoy. Shrinking market due to lower production volumes of machine-building industry, most of which was exported to Russia. Metinvest has also reduced the supply of rebar to the local market due to military action in Eastern Ukraine, which previously sold most of this product.
Vertically-integrated mining and steel group Metinvest expects by the end of 2014, reducing production by 10 percent compared to the business plan if production in the second half will fall by 20 percent.
Currently, Enakievo metallurgical plant is loaded by 30 per cent and plans to increase the production, but it depends on stable operation of the railroads and the end of hostilities. Azovstal iron & steel works and metallurgical works Illicha in Mariupol work when loading 70 percent of capacity. Avdiivka coke plant in the last three months have stopped production four times. Now the plant operates at 20 to 25 percent of capacity stipulated in the business plan.
The plan for 2015 envisages an increase in the production of the group, but to predict what will happen in this situation, is almost impossible.