The Ukrainian Ferroalloy Association (UkrFA) and the Ukrainian association of ferrous metallurgical companies (Ukrmet) have urged the government to draw up a program to settle the crisis in the metallurgy with taking into consideration the requirements of the World Trade Organization.
Ukrainian News learned this from a joint statement by the association, the wording of which was made available to the agency.
The statement reads that as a result of the return of the Chinese exporters to the world markets in the conditions of the world financial crisis the storage facilities were overstocked, the production declined, productions facilities were being shut down, and many employees of Ukrainian metal companies were forced to take vacation.
"Among the most popular calls of the present day are mass appeals to the government about the necessity of introduction of new programs on support and subsidizing of the industry. In this situation the industrial associations cannot help urging caution against thoughtless actions," the statement reads.
The associations urge metal companies, industrial associations, scientific institutions, trade unions, and state agencies to draw up a well-considered program to settle the crisis in the metallurgy with taking into consideration Ukraine's commitments before the World Trade Organization.
According to UkrFA and Ukrmet, employment of unconsidered measures may result in anti-dumping measures against Ukrainian companies.
That will close markets for the Ukrainian companies. The effects of this will double in the condition of the reduction in the demand for metal goods.
The associations note that the program must give ways for the solution to the most vital problems of the industry, including shortage of rolling stock for railway shipments, non-transparent rates of railway cargo traffic and the formation of price of energy carriers, delays with the VAT reimbursement.
The associations also call for measures to be drawn up to unblock access to the markets of the United States, Europe, and Russia and to protect the national market from the growing imports of metal goods. The associations also want measures developing the capacity of the national market.
As Ukrainian News earlier reported, Metalurhprom, the association of metallurgical plants, on October 6 said the situation in the industry was critical.
The Federation of Metallurgists is forecasting a 15% decline in metal production month-on-month for October in the wake of the reduction in the demand for metal goods on the world market.
The Federation of Metallurgists, industrial associations and management of metal companies urged President Viktor Yuschenko, Prime Minister Yulia Tymoshenko, and the Verkhovna Rada to take measures on healing the crisis in the sector.
The Derzhzovnishinform state information and analytical center predicted suspension of large investment projects in the metal sector to the crisis of the sector. It also said of 41 blast furnaces in the country five blast furnaces underwent repairs and 11 blast furnaces are operating at the minimal capacity.
Ukraine obtained membership of the World Trade Organization on May 16.
