In the midst of the crisis Heavy Metal strives on

Heavy Metal Produced 4.6 thousand tons of coated metal in the first quarter of 2020

During the first quarter of 2020, 4.6 thousand tons of coated metal were produced at the Heavy Metal plant (Pervomaisk, Mykolaiv region). Despite the quarantine measures, Heavy Metal remained on track, producing 82% of the metal proposed in the production plan.

GMK Center interviewed Denis Rysuhin, CEO of Metipol.

“In particular, in January we produced up to 1.1 thousand tons, in February – 1.9 thousand tons, in March – 1.6 thousand tons. According to the results of April, we painted about 2 thousand tons, the level of spot sales increased as well as the number of requests for metal “from the stock” comparing to March,”- said Denis.

Denis Rysuhin shared his opinion concerning the main trends of the coated metal market in the near future:

• reduction of visible demand by 50-60%;
• geographical division by regions of Ukraine (due to lockdown);
• reduction of warehouse inventory and loss of position in all market segments;
• transition from long-term specifications to spot sales;
• pressure on pricing;
• decrease of working capital turnover

According to the words by director of Metipol, the coated steel market in Ukraine in 2020 will develop as follows:

• market decline in March-May will result in a 10-15% decrease of steel consumption in the year up to 300-320 thousand tons
• if quarantine goes on, Ukrainian currency is devaluated and other negative factors keep affecting the market, the market may further fall to the level of 250-280 thousand tons

In 2019, Heavy Metal’s line was launched. Within four months, the Heavy Metal plant produced more than 6 thousand tons of coated steel. The plan for 2020 is to produce more than 50 thousand tons of finished product.

With the use of Bronx equipment, Heavy Metal is on its way to achieving this target for 2020.

Follow the link to visit Metipol web