A number of journals and conferences began to discuss the crisis in the Russian steel trading. The reasons for this seem to be there. Lower producer prices for rolled steel, which is quite noticeable, continuing for the third month. Both the index of prices of steel site MetalTorg.ru - manufacturers and metal trade - has been steadily falling. Compared with the beginning of July falling prices for rolled steel products from plants have already reached 12.2%, and in trade - 8.2%. And yet another reduction in steel prices in October, seems inevitable. Moreover, the forecasts are distributed "freezing" of this trend until the new construction season - spring 2008
Against the backdrop of sale prices or lose profits and customers. The latest in the late summer it became more profitable to buy the metal of little worth in commercial houses of metallurgists. Independent steel traders who buy from an expensive metal factories for 2-3 months before, faced with an acute problem of sales and prices. Especially that last year's hype on the rolled -purpose building in the summer of 2007 never took place.
It remains, in practice, the world of business, wish to trade with all the variations in market conditions at all costs to retain customers. This is the main key to success.
The overall economic situation and developments on the markets are always cyclical. After periods of decline followed by periods of recovery and the market. In the best of times, every company in the world accumulates profits, and the worst - they have to spend. What's more - sometimes to attract credit and other resources (financial, stock market, etc.) - would have gone only long-term, over many years, the financial balance.
The era of super-profits at the expense of free market sector, which is characteristic for Russia of the 1990s., Remained far behind. An era of fierce competition and counting every penny.
But the main thing - the fight for customers.
For example, "Norilsk Nickel" in the period of record rise in prices for its products (over $ 50,000 per ton of nickel in May) reasonably feared reduction markets. And he was right. Even now, after rolling back prices to a level of $ 30,000, the consumer demand around the world comes back very slowly. One of the traders in this market predicted the September 30th: "If the purchase of nickel will not begin until mid-October, the market will be" dead "all in 2008."
Russian consumers favor taking the current metal price declines to normal (by world standards) level. The Russian market of metal is alive and well, that and wish him further!
