TOP-10 COMPANIES OF RUSSIA ENGAGED IN TRADE OF METAL PRODUCTS

Steel is one of the most requested metal alloys in modern industry. Its` basic components are iron and carbon. Unique balance of hardness and plasticity made steel suitable for production of wide range of items, and large amount of iron ore, available for mining, made it widespread thanks to relatively low prime cost.

Global production of steel in 2019 made 1,9 billion tones, whereof Asian countries made 1,3 billion tones, including China – 1 billion tones, where about 53% of the global production is concentrated. In Russia steel production achieved 71,6 million tones or 3,9% of the global amount, our country takes 5-th place in terms of this indicator.

Milestone at steel market, as well as for other raw materials, is spreading trade warfare between the USA and other countries, including China. Drastic protective measures, imposed by the USA, became the reason of market volatility growth. Absence of clear prospects prevents companies from stable planning and investments in production. On the back of collapse of industrial production in the PRC and other countries caused by coronavirus pandemia, demand for steel will decrease. In this case, not only steel manufacturers, but also leading metal traders will be rebound.

About 40–45% of metal products is sold by metal traders of Russia, the rest amount is sold directly by steel manufacturers, including via online-platforms, whereas domestic consumption of steel products is estimated at 35 million tones, the same amount is supplied for export.

In table 1 the largest metal trading companies of Russia are presented. The analysis demonstrates that the market is not monopolized: many players exist with commeasurable indicators. Data of the latest available financial accounts show growth of annual revenue of leading metal traders on 20% at average. Taking into account recent events and current macroeconomic environment, position of trading houses will get worse because of decrease of demand for steel caused by oncoming global economic downtown.