Vektron considers development options

25th November 2010

Cold rolled coil prices in Russia are pushing local hot-dip galvanised sheet makers to turn increasingly to foreign suppliers. Vektron group, which owns HDG plants Unisteel in Ukraine and Unistud in Russia with 160,000 tonnes/year combined capacity, is buying most of its CRC requirements from Russia’s Severstal and MMK, but has recently arranged to get some tonnages from Turkish producer Borcelik and Nucor in the US, with the aim of diversifying its range of suppliers, the company tells Steel Business Briefing.

“CRC prices prompt us to become more prudent and avoid risks of overpaying where we may buy cheaper coil elsewhere,” Vektron’s commercial director Mikhail Mironov tells SBB.

Vektron also contemplates importing into Russia and Ukraine 3-4mm thick HDG to become more competitive and make up for growing costs. “Major Russian steelworks produce up to 3mm thick HDG, so we see an opportunity here,” Mironov says, adding that markets for thick HDG include profiles for light-frame residential buildings.

Vektron is hoping to see light-frame housing start becoming popular in Russia. Once established, the trend would generate substantial demand for hot-dip galvanised coil of heavier gauges.

However, it seems that intensive promotion will be needed to bring galv-framed small housing into vogue, SBB understands. Although steel-frame buildings are cheaper to erect, people stick to the traditions of building of wood and brick, while reinforced concrete framework persists in multi-family housing. So far, it is rebar that remains unrivalled steel product used in residential housing in Russia.