BMZ improved performance in the second quarter of 2016

During the second quarter of 2016, BMZ significantly increased production compared to the previous quarter. The overall growth was 129.1 percent. At the same time, the production of rolled products increased by 124.3 percent, pipes by 145.7 percent, metalware by 121.6 percent. The volume of production in monetary terms increased by 120 percent in relation to the first quarter.

The growth of exports at the quarterly level amounted to 122.8 percent in physical terms, and in monetary terms it reached 128.9 percent. The improvement in the efficiency of BMZ was facilitated by an increase in production volumes and shipment of finished products, as well as a favorable situation in the world steel market. The dynamics of growth has been clearly traced since April, after which the plant reached full capacity in May and June.

In addition, prices for steel products increased in the second quarter. For example, the price of a cast billet was $ 300 per tonne, up from $ 270 in the first quarter; and rebar rose to $ 420 from $ 380 per tonne. In the second quarter of this year, the plant has successfully passed 7 audits of certification bodies (Austria, Germany, Poland, Norway, UAE). Competitive prices with high quality ensure the formation of orders for the coming months. Thus, long products have orders for 3 months in advance.

Effective work in the second quarter allowed BMZ to make a net profit, albeit insignificant, based on the results of the first half of 2016. An important role was played by the program to reduce production costs, which provided an economic effect of $ 50 million.

It is assumed that the price level in the second half of the year will be higher than in the first, which will contribute to the strengthening of the economic situation at BMZ. This will also be facilitated by the achievement of the design capacity of section rolling mill No. 2, which produces steel products with high added value.