Production of construction fittings reduced to background build capacity

Official figures on production of building bars in Azerbaijan reduced amid rising investment activity and construction activity. Today in the market of building reinforcement remains virtually alone company , which also claims to increase production capacity .

According to the SSC, for 11 months of this year , the country produced 208.5 thousand tons of reinforcement, which is 7.1 % less than in the comparable period in 2012 . The volume of production of metallurgical products during this period of the year was 276.1 million manat, which is 2.5 % below the figure for the same period last year. The volume of fabricated metal products fell by half to $ 85.3 million manat.

Today, virtually the sole producer of construction fittings in Azerbaijan is LLC "Baku Steel Company". This company acquired assets in 2012 from another manufacturer of construction fittings in Baku - Azerbaijan - Turkish JV DHT Metal. It is actually run by another metal producer in Azerbaijan - JSC Baku Steel Construction ( until recently Baki Poladtokme). In early December 2013 , LLC "Baku Steel Company" announced , bringing the annual production capacity from 770 thousand to 1.1 million tonnes per year after the completion of modernization.

LLC Baku Steel Company, which has an opaque ownership structure , entered the market in the first half of 2001 with a production capacity of 350 thousand tons per year of steel smelting . On the corporate website noted that over the 10 years of operation it produced 2.5 million tons of products . Accurate official statistics on production in Azerbaijan has no reinforcement . According to research agency Turan, there are only data on annual production volumes of rebar in 2005-2011. During this period, the country produced 1279.5 thousand tons of reinforcement . Average annual statistical output in seven years is 182.7 thousand tons. If these data are consistent with the actual production volumes , why LLC Baku Steel Company invested heavily to increase their production capacity ? On this question the company is not responsible .

LLC Baku Steel Company uses for melting steel scrap metal, which is harvested mainly domestically. According to the State Customs Committee , in 2012, was purchased from abroad 101.1 thousand tons of scrap metal at $ 395.8 . It is assumed that artificially inflate importers purchase prices for the purpose of overstatement of cost of finished goods and tax evasion . For comparison, in 2012, the maximum cost of ferrous scrap in the country did not exceed $ 170 per 1 ton. Or in 2012, buying abroad 800 kilograms of Ferro cost the company $ 23.5 thousand.

In 2012 , Azerbaijan exported more than 110,000 tons of semifinished steel . In this case the declared value of the products was $ 529.5 per 1 ton . Fidgeted similar goods into the country at a price 24 % higher ( $ 656.2 ) . According to Customs, in 2012 into Azerbaijan from neighboring countries (Ukraine, Russia , Georgia) was imported about 260,000 tons of construction fittings . - 08A-