Business news

MINSK, 15 July (BelTA) – In H1 2015 Belarusian Steel Works (BMZ trademark) exported about 90% of the output, BelTA learned from Anatoly Volkov, First Deputy Director General of OAO BMZ – Managing Company of BMC Holding, during the press conference timed to Metal Industry Worker’s Day on 15 July.

Anatoly Volkov said: “Our steel mill is export-oriented. In H1 2015 we made 1.5 million tonnes of steel, 13.7% up from H1 2014. We exported about 90% of the output.”

The bulk of the export went to Europe, virtually more than half of the total volume. The CIS states, primarily the Russian Federation, received 15.5%. The CIS was followed by North Africa (15%), the Middle East, the USA, and Asia. BMZ sells 10% of the output domestically. The top ten buyers include Russia, Egypt, Germany, Poland, Lithuania, Latvia, the USA, Turkey, Italy, and Tunisia.

Over the course of its history BMZ has sold merchandise to 114 countries across the globe. In 2015 the number of countries that buy BMZ merchandise stands at 53. “We work on the global market and face the problems that exist there. Unfortunately, there are negative trends at present. Prices for metal products are falling. This is why we earned less than we expected due to objective reasons — falling prices. This is particularly true on the Russian market. In comparison with last year BMZ export the Russian Federation has been nearly halved. Back then it was 30%. But the share of other markets – Europe, the USA, the Middle East — was lower. By redistributing export between markets, by offering new kinds of merchandise we have managed to keep the situation acceptable. The stock in storage is minimal and is close to 20% of the average monthly output. It is a very low figure for a steel mill,” said the First Deputy Director General.

Anatoly Volkov said that in H1 2015 export increased in natural terms, with the export growth rate at 118% as against 2014. In money terms BMZ exported $538.2 million worth of merchandise. “We operate in the black although the margin is slightly lower in comparison with last year’s and now stands at 2.5%. We expect this year’s total export on par with the first half of the year. We don’t expect a sharp decrease,” stated the executive.

Belarusian Steel Works (OAO BMZ – Managing Company of BMC Holding now) was founded in 1984. The enterprise specializes in cast bars, profiled iron, rolled steel, reinforcing bars, metal cord, wire for high-pressure hoses and other kinds of wire.