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The Russian ferrous metal producers reduce the amount of output

Manufacturers of non-ferrous metals in the Russian Federation to reduce production. That is the conclusion reached by experts of the Federal State Statistics Service, analyzing the data on the activities of domestic companies in the sector in the first 2 months of this year. According to the report of Rosstat, the dynamics of the production of base metals in this category is as follows: copper — minus 1.6% on the results of January-February 2012, aluminum — minus 8.2%, nickel — minus 8.8%. the volume of production of tungsten concentrate, cobalt and zinc also declined during this period (15.5%, 13.7% and 11.6%, respectively — when comparing data year by year). In addition, the volumes of 6% declined release of lead and 6.5% -magnievyh alloys.

Analysts say: reducing the volume of production of non-ferrous metals in Russia — the expected reaction of market operators in the overabundance of resources in the sector. So at the end of the beginning of the year the world saw an increase in the size of the supply of commodity positions in this segment, while non-ferrous metals demand or remained the same as last year or decreased. As a result, the warehouses of trading platforms formed important unclaimed surplus even those resources that in the past year were in short supply. Because of this, many metals are impaired to a point close to its own costs, which led to the forced partial stopping power of many major market operators or pushed them to «preventive» reduction in the level of production that aims to stabilize the disrupted supply and demand balance.

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