Place of Ukraine on the World Steel Market
This study covers the description of the world and Ukrainian products related to the steel market. The study examines the main characteristics of steel and rolled metal markets, including the production volume, consumption and development forecast. The paper contains a description of rolled metal ma...
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irk-123456789-1233942017-09-04T03:03:11Z Place of Ukraine on the World Steel Market Kostenok, I.V. Vysotskyi, A.Ye. Popovich, G.S. Marketing This study covers the description of the world and Ukrainian products related to the steel market. The study examines the main characteristics of steel and rolled metal markets, including the production volume, consumption and development forecast. The paper contains a description of rolled metal market during the global financial crisis, as well as basic information about developments in the global steel industry. Це дослідження присвячене опису світової та української продукції, що відноситься до ринку сталі. У дослідженні розглядаються основні характеристики ринків сталі та прокату такі, як оцінка об’єму виробництва, споживання і прогноз розвитку. Робота містить характеристику ринку прокату в умовах світової фінансової кризи, а також основні дані подій у світовій стальній промисловості. Настоящее исследование посвящено описанию мировой и украинской продукции, относящейся к рынку стали. В исследовании рассматриваются основные характеристики рынков стали и проката, включая оценку объема производства, потребления и прогноз развития. Данная работа содержит характеристику рынка проката в условиях мирового финансового кризиса, а также основные данные по событиям в мировой стальной отрасли. 2013 Article Place of Ukraine on the World Steel Market / I.V. Kostenok, A.Ye. Vysotskyi, G.S. Popovich // Економічний вісник Донбасу. — 2013. — № 4 (34). — С. 104–111. — Бібліогр.: 17 назв. — англ. 1817-3772 http://dspace.nbuv.gov.ua/handle/123456789/123394 339.13.021:669.14 en Економічний вісник Донбасу Інститут економіки промисловості НАН України |
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Marketing Marketing |
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Marketing Marketing Kostenok, I.V. Vysotskyi, A.Ye. Popovich, G.S. Place of Ukraine on the World Steel Market Економічний вісник Донбасу |
| description |
This study covers the description of the world and Ukrainian products related to the steel market. The study examines the main characteristics of steel and rolled metal markets, including the production volume, consumption and development forecast. The paper contains a description of rolled metal market during the global financial crisis, as well as basic information about developments in the global steel industry. |
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Article |
| author |
Kostenok, I.V. Vysotskyi, A.Ye. Popovich, G.S. |
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Kostenok, I.V. Vysotskyi, A.Ye. Popovich, G.S. |
| author_sort |
Kostenok, I.V. |
| title |
Place of Ukraine on the World Steel Market |
| title_short |
Place of Ukraine on the World Steel Market |
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Place of Ukraine on the World Steel Market |
| title_fullStr |
Place of Ukraine on the World Steel Market |
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Place of Ukraine on the World Steel Market |
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place of ukraine on the world steel market |
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Інститут економіки промисловості НАН України |
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2013 |
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Marketing |
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http://dspace.nbuv.gov.ua/handle/123456789/123394 |
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Place of Ukraine on the World Steel Market / I.V. Kostenok, A.Ye. Vysotskyi, G.S. Popovich // Економічний вісник Донбасу. — 2013. — № 4 (34). — С. 104–111. — Бібліогр.: 17 назв. — англ. |
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104
Економічний вісник Донбасу № 4 (34), 2013
UDC 339.13.021:669.14
I. V. Kostenok,
Donetsk State University of Management
A. Ye. Vysotskyi,
G. S. Popovich,
Donetsk National Technical University
PLACE OF UKRAINE ON THE WORLD STEEL MARKET
Introduction. Effective export is one of the key
strategic factors of economic development of a country
during the globalisation process. The creation of a stable
export mechanism is one of the most important tasks
on the way of integration of Ukraine into the world
economy. This depends on the local enterprises’ ability
to produce and sell goods that suit the demands of the
world market in terms of quality, price and service.
Creating and strengthening exporting potential adequate
to the demand of the national economy is becoming a
key form of stimulating intraregional development of
various industries.
Since the steel-casting industry of Ukraine provides
over 30% of goods export and over 20% of foreign
exchange earnings, it can be considered the export-forming
sector of the economy and mostly determines its export
potential; thus the problem of improving the export
activity of its enterprises is an urgent one.
The goal of this article is to study the current market
conditions on the world rolled steel market, defining
Ukraine’s place in it, and suggesting ways of improving
the export activity of the steel-rolling complex. In order
to do that, we explore its trade and industrial segmentation;
analyse world data and study the geographical structure
of world steel trade; follow the price dynamics of the
product; outline the characteristics of the steel-casting
industry of Ukraine and suggest recommendations on
improving the foreign economic activity of smelting
businesses on the national level. The object of the research
is the process of Ukraine’s integration into the world
economy through the steel market.
World Steel Market. Speaking about the raw iron
ore deposits in general, those are located around the world
on all main continents and have about 80 billion tonnes
of pure iron in total. Ukraine, whose deposits consist of
about 30 billion tonnes of iron ore with 9 billion tonnes
of pure iron, is currently number one in this category,
having almost 18% of world's total (see Fig. 1).
An important index for production purposes is the
percentage of pure iron in iron ore, which defines the
actual potential of steel production in a given country.
Ore is considered rich if it has at least 57% of iron; and
for poor ores, the minimum value is 26%. Richest ores
are located in Russia, next in this list come Brazil, Australia
and Ukraine.
The largest producer, importer and consumer of
raw iron ore is China. In terms of production, it is
followed by Australia, Brazil and India (see Fig. 2).
Three largest iron ore companies are the Brazilian
Vale and Anglo-Australian Rio Tinto and BHP Billiton, who
together are in charge of a quarter of all iron ore mining
and over 60% of its sea shipping.
Fig. 3 shows the division of export and import of
iron ore in the world.
In Ukraine, in 2010, 72 million tonnes (3% of
worldwide total) iron ore was produced. In 2011 and
2012 it was 81 million tonnes. With that, Ukraine is
world's sixth iron ore producer, contrasting with it being
fourth by the total volume (accounting for pure iron
content). Ukraine’s production levels are significantly
below its initial potential.
Every year the world produces over two billion
tonnes of iron ore, from which 61% is turned into steel
(while the other 39% into cast iron). Aside from the drop
in 2009 due to the world financial crisis, the production
of steel has been steadily increasing over the past years
by up to 5% per year [2], reaching the all-time high of
1,548 megatonnes of crude steel output in 2012 [3].
During all this time, Asia has been the unchallenged leader
in volume of production (Fig. 4).
The countries with the largest volume of steel
production have been relatively unchanged over the recent
years. China is firmly in the first place, outpacing second-
place Japan by six times their production volume, and
has the highest rate of increase in this respect (15,7% in
2011; second-place Turkey has 10,5%). See Fig. 5 for
the comparison of world's twenty top steel-producing
economies.
In line with the increase in the volume of production,
the production capacities are increasing as well, as is their
level of utilisation, which is a good safeguard against an
excessive capacity crisis that occurred on the world steel
market in 2009. In 2010, this level increased from 84.4%
to 86.5%; and to 88.1% in 2011. The production capacities
have grown by 5.5% from 2009 to 2010 and by additional
1.1% the following year [4, p. 3].
I. V. Kostenok, A. Ye. Vysotskyi, G. S. Popovich
Marketing
105
Економічний вісник Донбасу № 4 (34), 2013
It is worth looking in greater detail at some of the
key world economies in the steel production. For example,
in Germany, according to the German Steel Federation,
for the past two decades the production of cast iron has
held at about 30 million tonnes per years and steel at
about 45 million tonnes per year. In the United States,
during the world crisis 29 steel companies with a total
capacity of 67 million tonnes went bankrupt, most large
I. V. Kostenok, A. Ye. Vysotskyi, G. S. Popovich
Ukraine
18%
Russ ia
16%
China
13%Brazi l
13%
Austra l ia
11%
India
4%
USA
4%
Rest of World
21%
Fig. 1. Iron ore deposits by country [1]
0 200 400 600 800 1000 1200 1400
China
Aus tra l ia
Brazi l
India
Russ ia
Ukra ine
South Afri ca
USA
Canada
Iran
Kazakhs tan
Sweden
Venezuela
Mexico
Mauritania
Other
Fig. 2. Iron ore production by country in 2012, millions of tonnes
Fig. 3. Iron ore export (left) and import (right) by country, %
106
Економічний вісник Донбасу № 4 (34), 2013
integrated firms. Consequently, the volume of steel
production has fallen by 47% in 2009 compared to the
previous year. Currently it is on the rise again, but still
has not reached the pre-crisis levels [5].
Speaking of Japan, it is important to note its special
geographic situation, specifically, the island location and
the almost complete lack of energy sources and raw iron
ore. Despite that, due to the traditionally high level of
technological provision of all levels of metallurgy and
constant orientation towards industrial development and
maintaining national interests, it currently holds the second
place in world steel production. Japanese steel industry,
same as most of the Japanese economy, is characterised
by deflation process.
India often faces the problem of attracting foreign
investment; it receives only about 2% of the world amount
of direct foreign investment into developing countries.
There are also problems with actual implementation of
the investment projects, often due to impossibility of
purchasing land for construction, as locals often protest
selling Indian lands to foreigners, as they perceive it. Due
to this, many “greenfield” projects of building new plants
from scratch, such as 2007 projects announced by Arcelor
Mittal and Posco, have failed. Instead, a safer bet now
I. V. Kostenok, A. Ye. Vysotskyi, G. S. Popovich
Fig. 4. Steel production segmentation in 2011, thousands of tonnes [2]
Fig. 5. Main steel producers in 2011, thousands of tonnes [2]
107
Економічний вісник Донбасу № 4 (34), 2013
are the “brownfield” projects, which essentially mean
either upgrading and improving current steel factories,
or rebuilding and repurposing older establishments. For
instance, the largest Indian steel producer, Steel Authority
of India Limited, has been using this strategy for some
time, getting permits to use closed and unused plants
and factories for their needs [6]. A huge advantage and
significant potential for Indian steel industry lies with its
vast iron ore resources, relatively cheap electric energy,
cheap and reasonably qualified workforce and often easy
access to sea ports.
In Latin America, Brazil is the leader in many
indicators, including steel production, where it comprises
about 70% of the region. Like India, it faces somewhat
similar difficulties, especially in attracting foreign
investment [4, p. 3]. South Korea is another important
player in the steel production, but it is specific in that its
territory has rather poor iron ore deposits. Most of raw
ore for the production is bought from South African
countries. Korea also is doing geological surveys and
developing deposits in Australia, Vietnam, Mongolia and
Ethiopia [7].
In Russia, steel production takes about 10% of its
industry and consists of over 1,500 firms, 70% of which
are urban development enterprises. The total production
volume is about 70 million tonnes, over 80% of which
comes from seven large companies [8, p. 55]. Russia
has the largest confirmed iron ore deposits, mostly in the
European part of the country. The single largest deposit
is the Kursk Magnet Anomaly.
China with its 45% share of the world steel market
is worth a mention, too. In this country, over 60% of
metallurgy are held by the state. Its inclusion in the WTO
pushed the government to great spending on development
of industry and infrastructure, which served as a base
for China's intensive economic development. One of the
main reasons of China's joining the WTO was its desire
to increase the influence of APEC countries on the world
economy [4, pp. 38 – 39]. Increase in own production
has gradually forced China to begin importing raw ore.
Having significant deposits of their own, China are
currently the largest importer of iron ore in the world.
The Geography of World Steel Trade and Price
Analysis. First of all, it is important to note that trade of
primary forms of steel is insignificant; in 2010 it was
just over one million tonnes. Main buyers of such steel
are Jordan (19%), Dominican Republic (13%), Denmark
(9%), and Macedonia (7%) [8, p. 26]. The main segment
of trade are iron and non-alloy steel.
At the end of 2011, world supply of steel was
1,515 million tonnes while demand was 1,036 million tonnes.
Actual and projected supply and demand data can be seen
in Fig. 6. Most trading is done in the USA (21%), South
Africa (14%), Bulgaria (11%) [8, p. 27]. Most consumption
of steel production is observed in Asia, where, of course, is
the world’s single largest consumer China. Also high level
of steel consumption, as well as high rate of increase in it,
are present in Japan, India and South Korea.
The price dynamics for steel reflected overall trends,
falling lower than 350 US$/tonne in early 2009. Since
then, steel price has been increasing up to the maximum
of 595 US$/tonne in April 2010, but fell within a few
months to 400 US$/tonne reflecting the threat of defaults
and budget problems in several European countries. After
that, there has been a steady growth again, up to a
maximum of 812 US$/tonne in February 2012. Currently,
as of February 2013, the composite world steel price is
at 736 US$/tonne [9].
The total volume of world rolled steel trade has
decreased by 36% to 269 million tonnes in 2009, which
caused a worldwide crisis. The price tendencies on
various rolled goods have been following the general
I. V. Kostenok, A. Ye. Vysotskyi, G. S. Popovich
0
200
400
600
800
1000
1200
1400
1600
1800
2000
2011 2012 2013 2014
Supply Demand
Fig. 6. Actual and projected world supply and demand, millions of tonnes
108
Економічний вісник Донбасу № 4 (34), 2013
pattern of ferrous metals prices, albeit with some lag. In
2011, consumption of rolled steel goods increased, mostly
due to activity of distribution companies in Europe and
USA that were replenishing their stocks depleted during
the depression of the previous couple of years, caused
by the financial crisis, the crisis of building industry in
Europe, etc. In the Near East, however, the demand for
those goods was still low, mostly due to political instability
in a number of countries, including Tunisia, Egypt,
Algeria, Jordan and Libya. These, and other, countries
sustained direct losses to their industrial complex because
of military and guerrilla warfare; and it repelled many
potential foreign investments. Although many industrial
companies keep their production programs running, they
tend to keep their stocks low and rarely place large orders.
Metallurgical industry of Egypt, one of the largest
rolled steel consumers of Near East, is currently on the
verge of collapse because of political instability. Local
companies find it almost impossible to export their
production and are thus unable to fulfil their promises
to their partners. CIS countries, being main importers
to the region, are stopping their shipments, afraid of
losses [10].
On the other hand, Turkey is now offering some of
the highest prices for the rolled steel produce, even despite
a small price drop compared to 2011. Also import prices
are increasing in China (mostly due to high demand in
the car industry) USA, Japan and India. In Europe,
imports of rolled steel have been falling due to an increase
in price from both local and Russian producers. This
instigated a noticeable move towards Ukrainian exporters
who keep price at previous lower levels.
In general, currently the number and relative position
of countries importing and exporting rolled steel remains
unchanged. China is the leading importer, followed by
Germany, South Korea and Italy, all of whom (except
China) significantly reduced imports during 2011. As for
export, the largest exporter of rolled steel is currently
Japan (10%), followed by USA (9%), Russia (6%) and
Ukraine (5%) [8, p. 54].
Metallurgical Industry of Ukraine. Mining and
metallurgical complex of Ukraine is the second largest
among the CIS countries for the production of ferrous
metals. In 2010, it produced 37% of CIS's iron, 34% of
steel and 27% of rolled steel goods [11, p. 14]. In recent
years up to 80% of goods produced by Ukrainian steel
companies has been exported: semi-finished goods,
finished rolled goods including flat hot-rolled and cold-
rolled coils and sheets, rails, rebar and wire rod, rolled
sections and products for further redistribution – steel
pipes, wire products, coated steel, etc. That the country
has a number of major steel plants allows it to occupy a
significant position among global steel producers. At the
end of 2011, Ukraine ranked 8th in the world in steel
production.
Steel production has always been a leading industry
of Ukraine. Volumes of production provide more than
20% of GDP. In the export structure, steel and its products
have always occupied an important place. With the rising
price of steel and steel products in the world market in
2011, due to increase in volume of sales to the EU steel
brought over 32% of all foreign exchange income in the
country.
Increased activity in international markets allowed
Ukrainian steel companies to significantly increase their
exports in 2010 – 2011 by 6,1%, up to 21.9 million
tonnes. The increase in exports of steel products was
for several reasons, one of which was the growth of the
supply of long rolled products (rails) in the regions of
the Caucasus and Central Asia, where there is an increased
demand for these products. At the same time, there has
been a significant decrease in exports of long products
to Russia. In the flat production sector, however, there
is currently an increase in activity on the markets that
are key consumers of Ukrainian produce. This led to an
increase in prices. In its turn, there is expected an increase
in demand from Russia due to their preparations for the
football World Cup in 2018. It is expected that steel
consumption will increase by 1 – 2%, or 3 – 5 million
tonnes. At the same time, trade limitations on supplying
this region with Ukrainian produce can become a problem.
It is worth noting that 75% of all metal produce exported
to the CIS from Ukraine is for Russia. In addition, Qatar,
which hosts the 2022 World Cup, is another possible
market for our metallurgy. Its government are planning
to renovate three existing stadiums and build nine new
ones. They are also planning an underground train line
with the length of 320 km.
The effect of “the Chinese factor” led to the Chinese
metal produce market closing for Ukraine. While in 2004
Ukraine exported over 2.1 million tonnes of metal to China,
in 2008 it was only 10 thousand tonnes, and since 2009
China completely stopped importing Ukrainian steel.
One of the few markets that remain (mostly) stable
consumers of Ukrainian metal during and after the crisis
are the countries of the Near East, to which goes 18.5%
of total export, making it the second, after the EU, market
in this respect. That market is also expanding fast and is
currently on the rise, allowing new perspective for
cooperation with Ukraine in the area of metallurgy. It is
expected that the recovery processes in Lebanon, Iraq,
Gaza Strip and the building boom in Algeria will increase
imports of Ukrainian produce, specifically, long rolled
products for construction purposes.
The largest companies of the Arabian Iron and Steel
Union (AISU, thirteen countries that together hold over
I. V. Kostenok, A. Ye. Vysotskyi, G. S. Popovich
109
Економічний вісник Донбасу № 4 (34), 2013
90% of steel production in Arabic countries) are
concentrated in Egypt, which is where a significant part
of Ukrainian export has been heading. This is caused by
high rate of development of Egypt’s economy (up to 6%
per year), which, naturally, helped increase the demand
for metal produce on local markets. Recently, however,
due to political and social instability caused by the
revolution, as we already mentioned before, trade has
diminished as Egyptian companies switched to their own
stocks instead of buying new produce. Export of
Ukrainian rolled metal goods there fell by 15.8%. It also
reduced in Tunisia (16.1%), Syria (31%), Morocco
(34.9%), Mauritania (41.4%), Algeria (48.3%) and Bahrain
(90.1%). At the same time, Ukraine's export in other Arabic
countries has increased, most notably Iraq (7.4 times)
and Qatar (10.7 times), as well as Saudi Arabia (34.2%)
and Jordan (22.3 %) [12].
In general, Ukraine has been expanding its
cooperation with Arab countries in recent years. In 2011
alloyed steel export increased by 89.1%, and cold-roll
flat-rolled products by 14.5%, although some reduction
in exports of other types of produce has also taken place.
There is a number of reasons behind this expansion,
specifically: [13, p. 67]
• Fast economic development of the AISU
countries;
• The markets in the AISU countries are both
capacious and unsaturated; thus there are enough market
niches still not occupied by other world steel producers;
• Domestic market of the Arab countries is not
fully provided with steel produce, especially production
of high-added products, enabling Ukrainian steel
producers to increase exports to the region.
• Increase in implementation of infrastructure
projects in AISU countries increases their demand for
steel products.
• Consolidation processes with foreign companies
in the steel industry are strengthening, offering the
prospect of Ukrainian-Arab vertically integrated companies.
In connection with the prospects of the Arabic market
for our metal producers, the cooperation between the AISU
and the Ukrainian Association of Ferrous Metallurgy.
One other prospective route of cooperation between
Ukraine and the AISU is attracting Arab investors to
modernise the companies of our mining complex using Arab
investment funds. For Ukraine this means influx of much-
needed financial resources for modernising and developing
this sector of economy; for the AISU this means participation
in the internationalisation processes and protection of
domestic economies from excessive money supply that
would cause inflation and overheating of the economy.
State Conception of Development of Ukrainian
Steel Complex. Increasing competition on the world
markets requires timely reaction to technical, economic
and informational changes that are taking place, by making
decisions and implementing solutions on both corporate
and government levels. For successful functioning,
Ukrainian steel firms must account for world tendencies
in metallurgy development, such as [14]:
• Increase in competition during steady fall in the
rate of increase of metal consumption;
• Increase in requirements to metal production
quality.
• Prioritised development of steel-making
technologies in order to create flexible and highly effective
technological complexes and modules.
Main gap in Ukraine's steel industry is the equipment
that is commonly used. It is often borderline decrepit,
and very outdated. Additionally, raw material is often of
low quality and is not supplied reliably. Consumption on
domestic markets is rather low, Ukrainian financial system
is ineffective and energy sources are not readily available.
In recent years, China started encroaching on traditionally
Ukrainian markets by increasing their production and
reducing prices. By doing so, Chinese companies will be
able to completely push Ukraine out of Asian markets.
To retain its place in the world’s top eight steel
producers, Ukraine needs to take urgent action and lower
prices in order to maintain a competitive edge. For that,
a complex analysis of cost prices has to be done in order
to find roads to lower prices. Innovative changes in
technology and production and constant increase in quality
and assortment of production are also required. By
analysing world steel product markets and defining
demand patterns producers are able to determine the
qualities that give competitors’ products advantage over
Ukrainian exports.
There is a number of ways of developing export
activities of steel companies [15]:
• Increasing the capacities of companies located
near seacoast. Such companies have easier access to
imported raw materials and energy sources, as well
as cheaper option of delivering export goods. Such
convenient location is always a good booster to steel mills
and primary production plants, as evidence by a strong
tendency towards locating such enterprises at sea and
lake coasts in the United States and seacoasts in Western
Europe. Heavy development of ferrous metallurgy in
Japan and South Korea has also strongly influenced by
developing higher production capacities in regions close
to large industrial ports [16].
• Development of new markets and expansion of
existing ones, attracting new consumers of steel
production by, as already mentioned, increasing its quality,
proper certification, active marketing, creating shared
international trading firms.
I. V. Kostenok, A. Ye. Vysotskyi, G. S. Popovich
110
Економічний вісник Донбасу № 4 (34), 2013
• Outsourcing steel production to developing
countries using transnational corporations, which can give
significant financial advantage. This is one of the key
reasons why countries like Brazil, Mexico, Argentina,
South Korea, Taiwan and Turkey are among the leaders
in cast iron production [16].
• Creating small and medium sized plants, as there
is a clear tendency for decrease in demand for large
volumes of homogeneous metal mostly due to technological
advances.
• Building vertical inter-sectorial complexes
incorporating both domestic and foreign firms using
private and state capital with orientation towards highly
technological production.
To increase sales effectiveness it might be a good
move to go from centralised sales management to custom
manufacturing, integrating the production cycle with end
consumer. This means changing the production process
making “addressed consumption” on the market a higher
priority than industrial product output.
Ukrainian industrial development strategy for the
period until 2017 notes that in order to create the basis
for moving on towards post-industrial economics the rate
of production development in the steel complex will be
slowly decreasing compared with the sped-up development
of high-tech production. Priority has to be given to
technological improvement and technical retooling of the
main steelmaking processes using resource-saving and
ecologically clean technologies, specifically: [17]
• Modernisation of enriching sinter productions
and higher quality of raw materials preparation;
• Improvement of secondary treatment plants and
continuous steel dispensing machines.
• Using new kinds of energy carriers in blast
furnaces.
It is important to create fitting conditions for
speeding up the process of diversification of production
and optimisation of its structure by increasing output
volumes for new production types. There is also a strong
need, especially from ecological point of view, for
improving schemes for development of natural mineral
reserves.
Thus, in order to solve the export problems on the
state level, it is important to determine main directions of
development of steel industry, implement corrections to
the industrial innovation policies, create effective state
export strategies and export promotion programmes.
Conclusions. World financial crisis of 2008
influenced main tendencies on the world steel markets,
causing noticeable fall in steel production in almost all
countries. Only Asian and some Near East countries
showed growth in that respect. Starting from the end of
2009, however, there has been positive dynamic in steel
production and growth in volumes of sales. Turkey,
South Korea and Italy showed largest growths in terms
of steel production.
Ukraine, along with other top steel producing
countries, kept its positions, though it was also hit hard
by the crisis that caused significant reduction of
production. Although Ukraine is holding steadily in its
eighth place by production, its higher production costs
(10 – 15% higher than in Russia and 24 – 27% higher
than in China) creates obvious difficulties on the
competitive market. Along with that, competitive pressure
is constantly growing and the problem of outdated
production equipment is becoming more and more
noticeable.
Thus, it is apparent that managing production costs
and optimal financial management are key questions in
managing foreign economic activity of a steel company.
Currently there are often separate money flows in
domestic and foreign currency in most companies, which
is creating additional difficulties.
Following areas of solutions to problems of export
activities of Ukrainian metallurgical enterprises were
identified:
• Reducing product prices;
• Organising the development of new markets and
expanding existing ones;
• Improving the organisation of export management;
• Non-centralised structure of sales management;
• Transition to custom production.
The analysis of the state of the steel complex
suggests that the rate of production will gradually slow
down compared to the rapid development of high-tech
industries. Therefore, Ukraine needs to implement modern
production technologies in order to export high-quality
end product. This, however, requires significant financial
inputs. Thus financing of the whole steelmaking industry
is currently one of the key problems.
In the long-term strategic direction of development
of the steel industry of Ukraine there should be systemic
restructuring of the industry with a focus on the situation
on both domestic and international markets. The building
of metallurgical complex and infrastructural objects
capable of increasing export potential of the industry must
continue. Prospects of development of Ukrainian metallurgy
are closely associated with increased competitiveness by
reducing energy and materials consumption and labour
costs, introducing of scientific and technical progress.
The interest of steel mills in Ukraine in the implementation
of all this hard work must be stimulated with appropriate
income taxes, comprehensive support from the government
aimed at development of production, implementation of
advances in scientific and technical process, use of
innovations.
I. V. Kostenok, A. Ye. Vysotskyi, G. S. Popovich
111
Економічний вісник Донбасу № 4 (34), 2013
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Костенок І. В., Висоцький А. Є., Попович Г. С.
Позиціювання України на світовому ринку сталі
Це дослідження присвячене опису світової та
української продукції, що відноситься до ринку сталі.
У дослідженні розглядаються основні характеристи-
ки ринків сталі та прокату такі, як оцінка об’єму ви-
робництва, споживання і прогноз розвитку. Робота
містить характеристику ринку прокату в умовах світо-
вої фінансової кризи, а також основні дані подій у
світовій стальній промисловості.
Ключові слова: сталь, прокат, залізна руда, ви-
робничі потужності, експортер, імпортер, сировинна
база.
Костенок И. В., Высоцкий А. Е., Попович А. С.
Позиционирование Украина на мировом рынке
стали
Настоящее исследование посвящено описанию
мировой и украинской продукции, относящейся к
рынку стали. В исследовании рассматриваются основ-
ные характеристики рынков стали и проката, включая
оценку объема производства, потребления и прогноз
развития. Данная работа содержит характеристику
рынка проката в условиях мирового финансового
кризиса, а также основные данные по событиям в
мировой стальной отрасли.
Ключевые слова: сталь, прокат, железная руда,
производственные мощности, экспортер, импортер,
сырьевая база.
Kostenok I. V., Vysotskyi A. Ye., Popovich G. S.
Place of Ukraine on the World Steel Market
This study covers the description of the world and
Ukrainian products related to the steel market. The study
examines the main characteristics of steel and rolled metal
markets, including the production volume, consumption
and development forecast. The paper contains a description
of rolled metal market during the global financial crisis,
as well as basic information about developments in the
global steel industry.
Key words: steel, rolled metal, iron ore, production
capacity, exporter, importer, raw materials base.
Received by the editors: 23.09.2013
and final form 04.12.2013
I. V. Kostenok, A. Ye. Vysotskyi, G. S. Popovich
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