The slowing economic growth during the last months accompanied with the stabilized export price levels, led to reduction in the steel
production volumes in
Ukraine.
Beginning from September, demand is expected to strengthen, and so the prices in the international market. The Ukrainian market is expected to stabilize too, even an improvement in the foreign trade is seen as a possibility. However, industry insiders believe that; the Ukrainian steel producers export market to
southeast Asia that account for 30% of their
production, is under threat of a Chinese exporters overwhelming in this region for a long run.
The reduction in the Ukrainian steel
production is related to the increased
production capacity in
China, some experts state. No matter how better the other market and economic conditions are, the transformation of
China from an importer to an exporter will continue influencing Ukrainian producers, supplying 30% of their
production to the market of southeastern Asia.
China is inevitably focused on the closest markets at the first place for exporting its
production, and the
southeast Asia is one of the main neighbouring markets, which has been supplied by
Ukraine thus far. Now with the almost equal qualitative characteristics, the
freight advantage the Chinese producers have, will constitute a great threat for the steel exporters in
Ukraine.