Ministry of Industry and Trade: production in the metallurgical industry fell by 25%

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Ministry of Industry and Trade: production in the metallurgical industry fell by 25%
Ministry of Industry and Trade: production in the metallurgical industry fell by 25%
5 July, 09:40Economy
The Ministry of Industry and Trade sees the risks of a significant decline in the profitability of metallurgical enterprises against the backdrop of a quarter reduction in production in June compared to April, as well as falling prices for steel products on the Russian market.

According to the head of the department, Denis Manturov, this will cause a significant decrease in the profitability of enterprises.

"Metallurgical enterprises are reducing the volume of production of unclaimed assortment, and now we are seeing the consequences: the utilization of production capacities of domestic enterprises in June of this year decreased by an average of 25% compared to April of this year. This decrease, coupled with a 30% decline in prices for steel products in the Russian market, could lead to a significant drop in the level of profitability of enterprises - we would not like to allow this to happen", - the minister said.

He recalled that the industry is currently facing many challenges. We are talking about logistical difficulties associated with the reorientation of export deliveries, the impact of the current exchange rate of the national currency, a decrease in demand for metal products in the domestic market in all sectors of the economy, including the construction sector.

According to Manturov, today it is necessary to consider the issue of abolishing the excise tax on liquid steel in order to reduce the tax burden on the metallurgical industry.

Recall that last year Russia introduced export duties on ferrous and non-ferrous metals, and from next year the tax on the extraction of minerals for metallurgical organizations will be increased. Then the news about the introduction of duties brought down the shares of Russian metallurgical companies on the Moscow Exchange.

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