Market Analysis

members of the Ukrainian metal traders Association (UMA) again sharply criticized the leadership of the Krivoy Rog Mining and Metallurgical Works Arcelor Mittal Krivoy Rog (Dnepropetrovsk reg.) for the delay in shipment of steel in the domestic market of Ukraine, as well as a selective approach to the consumers of steel, suspecting enterprise managers of corruption.

According to association president Andrey Fedoseev on Tuesday, UMA complaints from metal traders on overdue shipments reinforcing bars from the Arcelor Mittal Krivoy Rog.

This picture is from August of this year. According to the metal traders, today ships the rolling plant, which was paid in August. At the same time not all the companies, according to market participants, being on equal footing. In particular, Krivoy Rog company, thanks to long-term and warmer relations with plant management, receive preference in the order of shipment of goods from factory , - said A. Fedoseev, referring to the treatment metal traders.

He noted that the two companies based in Krivoy Rog, were able to get a double for about 40% of the total volume of reinforcing bars, shipped in September, addressed to Ukrainian consumers: 14 tonnes from 35 tonnes.

In a situation of unequal access, when most market participants complain about the lack of fixtures inwarehouses, and retailers receive a single metal-on-demand, it is hardly worth talking about civilized market. It should be noted that since the previous criticism of leadership Combine assured market participants on measures taken to prevent the negative factors in the plant with consumers. However, the situation has not improved, and even opposite - has worsened , - considers the head of UMA.

According to him, we are talking about the inconsistency and lack of absolute control by the top management of the company, amid a lack of understanding of domestic steel market in Ukraine. As a result, the market becomes a hostage of the corrupt managers, sales metkombinata - believes the president UMA.

Fedoseev added that such actions undermine the market in general, and cast his 10 years ago.

can only conclude that the policy group is formal and populist in nature, when it comes to prioritizing the domestic market, as an extension undertaken by the group investobyazatelstv. Furthermore, it demonstrates the frankly weak management. Market tired Declaration of intent. We need a result - the civilized working conditions: first, equal access and full provision of the market , - summed up the agency.

As reported earlier this year sent a letter to Director General UMA Arcelor Mittal Krivoy Rog Jean Jouet, stating the need for coordinated action by consumers and producers of the metal due to the difficult market situation of black metal, the financial crisis. The members of the Association made several suggestions, which, according to the UMA, can improve relationships and increase the volume of shipments.
Earlier

UMA has strongly criticized the Arcelor Mittal Krivoy Rog for ignoring the interests of consumers of steel companies in the domestic market of Ukraine.

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