Iron and Steel Industry Shows Unprecedented Reduction

In January of this year the volume of industrial production in metallurgical industry in Azerbaijan amounted to 17.3 million manat, which is 38.7% less than in the same period last year. Reduced investment in the construction sector seems to be the first thing that hit this sector of heavy industry.

According to the State Statistics Committee, in January steel production halved and amounted to 17.7 thousand tons. Produced were 19.3 thousand tons of rebar, which is 30.1% less than in January last year. At the same time in warehouses manufacturers accumulated 26.4 thousand tons of finished products. Rolled were 1 666.8 tons of steel pipes, which is one third less than the year before. Production of aluminum and copper cables and profiles decreased respectively 46.4% and 82.4%. The suspension of production activities was stated by the Sumgayit copper waste processing plant.

Due to the lack of raw materials, the activities of LLC Baku Steel Company were suspended.

It should be noted that it is possible that part of the production of metallurgical industry is illegal. For example, in the territory of Sumgayit Power Station №1 a steel and steel-bar mill of Azenco has been operating since last year. However, the production figures of this plant may not be reflected in the statistics. --08D