Coated Steels: Forecasts of Market Capacity and Trends

Experts do not have a common opinion about the possibility of adopting import duties on coated steels. During an online conference Galvanization and Paintwork: Matters of Development of Processing and Consumption which has been held today by Metal Supply and Sales magazine, a media partner of the exhibition, Mr. S. Maslennikov, Chairman of Russian Union of Metal and Steel Suppliers Committee for Promotion of Contemporary Types of Galvanized and Painted Rolled Products, Director General of Stalinvest stated: "I am fully against taking protecting measures against raw materials imports. I can give some examples of galvanized further conversion products importing into the Far East. If we raise import duty, steel as raw materials for manufacturing of shaped decking, metal tiles, bent shapes etc. will be efficiently processed abroad and then finished products will be imported into Russia. If prices for raw materials go up, steel makers will raise sales prices as well which will make us, steel processors, less competitive. Eventually, this will affect us first, as steel processors, and then steel makers for the demand for their products will drop".
Mr. Yu. Eliseev, President of the All-Russia Association of Steel Builders, Head of Steel Structures Group of Companies did not agree to this: "In Europe and all over the world a rolling mill that produces shaped decking is efficient in the area of 400 km, not more. Every project we are engaged in is unique. That’s why it is hardly possible to charge us with imports in big amounts, for every mill uses lots of size types. I believe, transportation will consume profit".
Both experts noted that prices for this type of products in this quarter will not change. However, if imports duty is adopted, the market will react with rise in prices in March or April, noted Mr. S. Maslennikov.
According to forecasts of the participants of the online conference, the capacity of flats market and rolled products with polymer coatings market in 2009 will considerably reduce – by 30-40%, as compared to 2008.
The same topic will be also discussed at Galvanized and Painted Rolled Products: Trends of Production and Consumption’2009 4th International Conference which will be held on March 16, as part of MetallStroyForum.