Will Metal Market Regulator Be Established?

The Deputy Head of the Department of Oil and Chemistry of the Apparatus of the Cabinet of Ministers of Azerbaijan, Candidate of Geology and Mineralogy (PhD), Rashid Fataliyev spoke to the official press with a proposal to establish a state-owned company or a joint-stock company Azermetal. Experience shows that such initiatives occur for some reason - most likely, the metal market will fall "under one roof".

"Competition in the global steel market is one of the hardest - much more rigid than in the sale of hydrocarbons. Prices in this segment are changing rapidly, and in order to cope with the pressure of major foreign companies, achieve a stable sales market and sustainable financial capacity, it would be appropriate to manage the enterprises of ferrous and non-ferrous metals through a single structure," he wrote in his article.

The author points out that last year, local steelmakers produced nearly 370,000 tons of steel and cast iron in the form of valves, pipes and other structures, more than two-thirds of which (250 000 tons) came from Baku Steel Company.

From January to August this year, the local steel industry and enterprises for the production of fabricated metal produced goods and rendered services worth 197.8 million manats. During the reporting period, production of cast iron in Azerbaijan amounted to 283.2 tons, steel pipes – 18,318.6 tons, and reinforcement – 146,600 tons.

During the reporting period, the producers exported 7,107.4 tons of pipes made of ferrous metals (more than $ 6.2 million), 58.5% less (and in money terms - 62.6% less) than as of August 1 of last year. --17D-