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S. Bunits: "the decline of the tsvetmet market has been going on for five years"

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Image source: metalinfo.ru

As part of the business program of the Week of Metals in Moscow, the Russian Union of Suppliers of Metal Products (RSPM) held a round table of producers, suppliers and consumers of raw materials and rolled non-ferrous metals.

The participants of the round table discussed the current situation in the non-ferrous metals market and its future prospects, important aspects of the spot market and interaction with manufacturers, the presence of imported products (mainly from China), possible shortages in some product groups and sizes, and other issues.

S. Bunits, a shareholder of Galaktika, a member of the RSPM Board in the direction of "Non-ferrous metal rental Market", R. Kaneev, Head of the Sales Department of Aluminum Metallurg Rus, V. Feldman, head of the Non-Ferrous Metals project of Metallservice, A. Pensky, General Director of Almet, O. Karpinskaya, Deputy General Director of promtsvetmet, shared their opinion.

Speaking about the situation in the non-ferrous metals market in general and in Galaktika in particular, S. Bunits noted that today the company fulfills certain indicators in terms of sales and revenue, and this allows it to stay afloat. Galactica's revenue decreased by about 12% compared to last year, with a decrease of about 17% in tonnage. According to him, the decline in the market of tsvetmet has been happening for at least five years.

If we talk about the output of the copper group for four companies (UMMC-OCM, Acron Group of Companies, Kamensk-Uralsky and Mtsensk non-ferrous metal processing plants), then at the end of this year it is 4.2—4.4 thousand tons per month. In 2019, 5.5—5.6 thousand tons were produced, in 2018 — 6.4 thousand tons. That is, in two years the market lost about 2 thousand tons per month, and in percentage terms it is about 30-33%.

"As for the indicators of Galaktika, we can say that we are in a trend: everyone does not receive these volumes, and we do not receive them," S. Bunits said. "This suggests that the market is really drying up a bit."

In 2020, according to him, the exchange went up. those who were engaged in spot trading and who had commodity balances in warehouses began to earn thanks to inflationary indicators, the depreciation of the ruble and other parameters.

"The situation with aluminum rental is probably more complicated. i assume that in the short term, for example, until march, there will be a shortage of aluminum semi-finished products from a number of alloys and some standard sizes due to the accident at the kamensk-ural metallurgical plant (kumz), " s. bunits said. — Someone will decide to play it safe and buy similar products in China. but it should be remembered that in this case there are certain risks associated with logistics, ccc, protective duties."

Read more about the situation on the non-ferrous metals market in the review, which is published in the latest issue of the magazine " Metal Supply and Sales»

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