Mr Boiko sees further downturn for Ukrainian steel mills
Wednesday, 21 Oct 2009
Mr Boiko CEO of Mariupol Illich Steelworks in an interview with Radio "Liberty" said that the situation in the Ukrainian steel industry will become worse in the next four months.
He told that “The reason is an increase in production in the previous few months which has not been supported by a commensurate growth of demand. Real demand increase was observed only in China, but steel overproduction is to be seen there now, too. Accordingly, their steel will flood the other markets, with consequences that are easy to predict.”
According to Millennium capital analyst “We see this news as NEGATIVE not only for Ukrainian steelmakers but also for the whole of Ukraine because the steelmakers are the principal Ukrainian cash makers. Along with an increase in the share of semi products in their output, both of the above factors will reduce steelmaking companies’ profitability and sales, as well as stem the inflow of hard currency in Ukraine.”
