Bebeshko K.S., Mudrenko A.A., PhD Urchenko K.A.

Oles Honchar Dnipropetrovsk National University, Ukraine

MODERN TENDENCIES OF THE METALLURGICAL INDUSTRY DEVELOPMENT IN UKRAINE

The year 2007 was the most profitable for the metallurgical enterprises in Ukraine, when the level of the total production volume stood at 42,5 million tons. In 2008 the world’s financial crisis consequences reduced the metallurgic production almost by 13% in comparison with 2007. This situation was mainly provoked by a set of external economic and domestic factors such as a conversion of China into an integrate steel exporter, an increase in cost of raw material resources, transportation, etc [3]. At the beginning of 2009 the state of the Ukrainian metallurgy became stable and the production volume rose slightly in comparison with the last quarter of the previous year. However, the level of the production capacity was still low, and the setback in production counted 40%. In 2010 the signs of revival were observed in the Ukrainian metallurgic market, the volume of the output grew by 12,2% in comparison with 2009. The situation remained the same in the first six months of 2011.

Nowadays Ukraine’s mining and smelting complex consists of 15 metallurgical plants and complexes, 3 ferroalloy plants, 14 mining enterprises, 12 chemical-recovery factories, 13 refractory production plants, 20 hardware plants, 8 pipe production enterprises and 134 enterprises, which organized pipe manufacture [2]. The major steel producers in Ukraine are Metinvest Holding, which includes MC “Azovstal” and Enakievo hardware plant, Industrial Union of Donetsk Basin (Alchevsk hardware complex and DMC named after F.E. Dzerzhinskyy), ArcelorMittal Kryvyi Rig, Mariupol Iron and Steel Works and MC “Zaporozhstal”. The total specific gravity of the 5 biggest producers makes up around 90% in the domestic metallurgic industry structure.

According to the World Steel Association Ukraine is now in the list of the world’s 10 biggest metal producers and exporters. Around 80% of the Ukrainian metallurgic production is exported abroad, providing over 40-48% of the currency earnings. According to the findings of the State Statistics Service of Ukraine from January to August 2011 the metal export from Ukraine stood at $14.934 billion, what is 34,5% higher than the similar index in 2010. Besides, the metal export made up 42,2% of the total Ukrainian export in 2007. And though in 2011 the metal export quota went down to 34%, Ukrainian metallurgical manufacture is still one of the key industries [4].

In spite of a large volume of the output, there are hardly any Ukrainian enterprises in the domestic market. A considerable amount of foreign metal goes into the Ukrainian market. Today the metal production import makes up 7% of the total import volumes. As it is shown on fig. 1 from 2001 to 2008 the export of metal products increased by $20.468 billion or by 287,3%, and the import volumes – by $5.579 billion or by 688%. In 2009 the export declined in comparison with 2008 almost by $14.778 billion or by53,6%, and the import – by $3,714 billion or by 58,1%. Such a dramatic fall was the result of the home metallurgy stagnation and led to very negative consequences for the Ukrainian metallurgists.

Fig. 1. The dynamics of the metal production export and import

 in Ukraine in 2001-2010 [4]

The world’s economic crisis and its backwashes in Ukraine proved a necessity of the domestic metallurgic production re-orientation from the traditional foreign markets into the inland to stabilize its mining complex functioning and decrease its dependence from the world’s market condition fluctuations. The workable way for the crisis overcoming in Ukrainian metallurgy is to create barriers that will prevent the metal-roll import into Ukraine. The domestic produces are able to satisfy the needs of the country. Cutting down a metal products consumption by the most developed industrial countries generates a need of searching new sale markets. African countries` market remains an unoccupied niche for the Ukrainian metallurgy. Another perspective course for the further development is the construction of the miniplants and also metallurgical microplants [1]. Still a resumption of the metal export will mainly depend on the world`s market environment and an improvement of the price competitiveness will help the Ukrainian exporters keep a venture afloat during the global recession.

Literature:

1. Мазур В.Л. Конкурентні позиції підприємств гірничо-металургійного комплексу України / В.Л. Мазур// Економіка України. – 2009. – №3. – С. 4-19.

2. Радченко К.М. Стан та тенденції розвитку ГМК України / К.М. Радченко // ПВНЗ «Буковинський університет», Збірник наукових праць «Економічні науки». – 2010. – №6. – С. 18-24.

3. Черніков Д.В Аналіз ринку металів в умовах світової економічної кризи та його вплив на формування державного бюджету України: [Електронний ресурс] / Д.В. Черніков. – 2009. – Режим доступу: http://www.customs.gov.ua/ dmsu/control/uk/ publish/article

4. Офіційний веб-сайт Державного комітету статистики України [Електронний ресурс]. – Режим доступу: http://www.stat.gov.ua

5. Steel Statistical Yearbook 2010, Worldsteel Committee on Economic Studies. – Brussels. – 2011. – 120 p.