In the first H 2009 Ukrainian internal market of steel trading was characterized by consumption decrease, growing share of distributing companies, increase of retail sales from metal centers at general sales volume and greater market share of large traders.

These were the tendencies mentioned by Dmitriy Nikolayenko, CEO of Metinvest-SMC at the annual Sales Conference, Steel and Rolled Products Division, METIVEST HOLDING LLC, in Donetsk, on 17-19 June 2009.

The consumption both at distributors and primary market decreased by 60% in 1 H 2009. In particular, flat products consumption decreased by 56%, rebar consumption fell by  64%, wire rod consumption made 48% less than in 1H 2008.

Dmitriy Nikolayenko also observed the growth of distributors share at the total market of steel sales, from 41% in 1 H 2008 to 48% in 1 H 20009. At rebar segment the distributors share grew from 85% to 95%, at the angle segment from 73% to 84%, at the I beam from 61% до 94%, at the channel segment from 75% to 93%. The share of distributing companies at flat products sales decreased from 44% to 33% which was caused by direct sales from steel works to end consumers.

For editors:

Metinvest is an international vertically integrated mining and steel group of companies. Production facilities of Metinvest produce enough steelmaking raw materials to meet its own demand and to be the key supplier to major steelmaking companies in Ukraine, Europe and Asia.

The major shareholders of Metinvest are SCM Group (75% ownership) and Smart-Holding (25% ownership) partnering in Company’s management. The merger of mining and metals assets of SMC and Smart-Holding has started in 2007 and will have been accomplished in 2009.

METINVEST HOLDING, LLCis the managing company of Metinvest Group.

Press centre Metinvest Group — 23 July 2009