“CIS Steel and Raw Materials in the World Markets”

“1st CIS Steel and Raw Materials in the World Markets” conference organized by the Metal Expert Research Group started in Kiev on April 13th Thursday. SteelOrbis presented their view on the market to the conference as well as major players in the CIS steel market, and was also invited the open discussions during the last session of the first day. It was brought to the attention of the conference that the shortage of raw materials would continue in the industry, and cost of production would continue to keep the prices at a high level in general. Having said that, almost all speakers and participants of the open discussions agreed that supply would increase in the short term causing a certain decline in the prices. However some participants also added that the months of July and August might bring another upward trend although it might not be a sharp and strong one. Leading Russian steel producer MMK stated that China and Middle East would continue to be important markets for them, and that they would increase their exports in the next couple of years. The mill has also stated that Turkey is an important market for them, and downplayed the rumors that they have no material available for the market. The explanation was that several traders would be approaching the mill for the same customer and business and the mill would not be able to offer to all. Severstal has stated that North American market is more a priority for them rather than Middle Eastern markets. The mill confirmed that they will be introducing their new polymer coating line and JV with Arcelor towards the end of the year. Evraz Group told the conference that the semi finished exports will continue to play a big role in their business in the future but the local market would still be the priority for them. Ukrainian producer Ilyich confirmed that they will continue to export majority of their production and since there are no new investments in the horizon no growth in production is anticipated. The mill also confirmed that they are sold out for May and is filling in their order books for June fast. Mittal Steel Krivoy Rog has given information about the new strategy of the company, and on the investments planned for the next few years. The mill aims to have 10 million tons of billets and over 9 million tons of products by 2010, and has also confirmed its desire in increasing their sales in the Middle Eastern market and strong interest in entering the Gulf market with their reinforcing bars of course after getting the necessary certification.