Director of the Sales Department of ArcelorMittal Kryvyi Rih Yevhen Chumachenko: It was not easy to keep up sales and market positions in 2020

Difficult 2020 the ArcelorMittal Kryvyi Rih team passed with dignity, says Evgeniy Chumachenko, director of the sales department in Ukraine and the CIS countries. In an interview with the “Metal-Kur” Premier magazine, he said that amid a pandemic and protectionist measures, it was possible to successfully change the geography of export sales, and in the domestic market – to strengthen its position against the background of the recovery in demand for long products and the expansion of the mill’s service and range … In the new year, the company expects further improvement in production and sales figures. And in the domestic market, an important reason for the growth of sales may be the continuation of the implementation of projects to upgrade the infrastructure and the introduction of affordable mortgages. – Evgeny Aleksandrovich, what results in sales of long products in the domestic market do you expect at the end of 2020? – According to preliminary estimates, the domestic market received a slight decrease compared to the previous year as a result of a pandemic and a lockdown in the first half of the year. The purchasing activity of our clients in general and construction companies in particular during this period has noticeably decreased. The most significant reduction in purchases was made by small and medium-sized construction companies, in which the majority of workers from other regions of the country – the people of roses – “gathered before the lockdown and then for a long period were unable to return to the” objects. The demand began to recover only from June, in July-October it remained at a fairly high level. In November, buying activity seasonally, as well as against the background of fears of introducing a second lockdown in December, slightly decreased. However, if we look at it as a whole, then in the second half of the year we partially managed to make up for the losses in the first half of the year. – Despite the reduction in sales, the company has strengthened its position in the Ukrainian market. How did this become possible? – I would say that we have retained our market positions. Compared to ours, the second Ukrainian manufacturer, Dneprovsky MK, increased its share in the domestic market more noticeably. In general, a decrease in supplies from Turkey (they are, but not as systemic as last year) and Moldova (after the introduction of the anti-dumping duty at the end of 2019) had a positive effect on our positions in the domestic market. However, on the other hand, BMZ increased its supplies, partially offsetting the volumes of other foreign suppliers. Therefore, we welcome and fully support the decision of our government to introduce a special duty on the supply of Belarusian varieties. – Is there a positive effect on the position of ArcelorMittal Kryvyi Rih by the development of sales of the variety jointly with Ukrainian traders? – Noticeably not, these are the usual market relations with the distributor “distributor. We have worked with them quite actively before, since they have a wider range of rolled metal products and can form complex supplies, including products that we do not produce. We, of course , we plan to continue cooperation with metal trading organizations, but we will not directly refuse supplies. Communicating with end customers, we better understand their needs for the product – to change, modify, master. – How has the level of competition in the Ukrainian market changed last year ? – Competition is quite tough. Firstly, there is DMK. Turkey is always “close by”, which can produce millions of tons of fittings and easily meet all the needs of the Ukrainian market, and its delivery by sea is about $ 10-15 /t In addition, there is high competition in shaped products – apart from us, supplies are carried out by Metinvest, DMZ, and Russian manufacturers. just keep your sales and positions. – What new positions of the variety “ArcelorMittal Kryvyi Rih” proposed for the domestic market? – Considering the fact that customers are striving for complex purchases, and we lacked some positions, we mastered the production of a corner with a shelf of 63 mm and 75 mm. Also, a trial rolling of an 80 mm corner was performed. Products are already successfully shipped to consumers both in the domestic market and in the CIS countries. As part of import substitution in the fourth state, we are developing the production of rebar in coils (reel of winding) as an alternative to Moldovan rebar in coils. Now we are already ordering products with a diameter of 8 mm to 16 mm. – Why was it important to impose restrictions on the supply of Belarusian varieties to Ukraine? – Because the Belarusian manufacturer, unlike us, does not have a market formation of the prime cost, since production is subsidized by the state, in particular, in terms of scrap. Against this background, prices for Belarusian rebar often matched prices for square billets, and it was almost impossible to compete with Belarusian products on the Ukrainian market. At the same time, the Belarusian market is closed by the EEC duty, and we cannot supply our products there. – What effect do you expect from the new duty on the domestic market? – First of all, it is price parity. In addition, with the introduction of a special duty, we expect that it will grow by

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