Governmentinitiatives
Prime Minister addresses main issues of the steel industry
Russia’s Prime Minister Dmitry Medvedev met with the heads of the country’s leading steel companies to discuss the key challenges the industry currently faces. Mr.Medvedev highlighted a rapidly declining profitability of the Russian steel sector and a decelerating demand in the sector. Government officials and industry representatives elaborated a number of initiatives aimed at stimulating domestic steel demand, easing the regulatory burden and seizing the opportunities provided by the country’s WTO membership.
Source: Government of Russia
Russian Government adopted a growth plan
The Russian Government adopted a plan containing a set of measures aimed at stimulating country’s growth. Those include increasing bank creditavailability, supporting SMEs, attracting investments, improving business climate and supporting the real sector. The earlier announced initiative to invest state reserves in returnable infrastructure projects run on public-private partnership is also stipulated by the plan. Most of the systematic measures are to be adopted by the end of the year.
The plan is available at http://government.ru/media/files/41d47e983e0de0e7a9f2.pdf
Source: Government of Russia
Steel industry news
Three EAFs launched
Russian pipe producer TMK Group,steel producer NLMK Group and UGMKSteel have launched 3 electric-arc furnaces in South, Central and the Urals regions of Russia correspondingly. The combined production capacity is about 3Mty. The new EAFhas enabled TMK to scrap its last open-hearth furnace while NLMK and UGMK have also launched a 1Mty and a 0.55 Mty long product millsat their sites. Another Russian steel producer Severstalplans tostart its 1 mty EAFmill in the first quarter 2014.
Source: Corporatenews, Metalinfo
New long product micro-mill in Central Russia
ICT Group started the construction of a 350,000ty long product mill in Kursk region (Central Russia). The company plans to invest over $160 mln and to achieve the projectedoutput by 2017.
Source: Metalinfo
Plate rolling mill to be shut in the Urals region
Kamastal Metallurgical Works has decided to shut its sheet/plate hot rollingshop by October 2013 because of losses from uncompetitive sheet sales. The move should releaseresources, including electric arc furnace (EAF) capacity, for increased specialty steel manufacturing.
Source: SBB
Steel using sectors
Car sales decreased
Sales of LCVs in Russia decreased by 6% y-o-y to 1.57 mln cars in January-July 2013. The Association of European Businesses in Russia forecasts a 5% reduction by the end of 2013 though the overall market situation should stabilize shortly once the government program on car credits stimulating consumer demand is launched.
Source: AEB
Government revived subsidies for car loans
Russia's Ministry of Industry and Trade revived a programme of government-backed loan subsidies to help boost auto sales. Banks will hand out subsidized loans through the end of 2014 to customers buying cars that cost 750,000 rubles ($22,800) or less. A similar subsidy program had been in place between 2009 and 2011.
Source: Ministry of Industry and Trade
More investments in sea and river transport
The Ministry of Transport has drafted a strategy of sea and river transport development until 2030 forecasting over $70 bln of investments in the sector,45% of which are budget sponsored.
Russia’s largest maritime shipping company Sovkomflot reported over $700 mln investments in the Russian ship-building in the past 5 years. The company plans to focus on civil ship-building in the Far East with over $200 mln to be invested in the coming years.
The Russian Government earmarked $2.6 blnon two large Arctic nuclear-powered ice-breakers to be constructed in 2014-2020. The vessels are to replace the operating ships built in 1980’s.
Source: Government of Russia, Corporate website, Metalinfo
