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18 August 2022, 14:44

Belarusian Universal Commodity Exchange helps Belarusian enterprises save on metal purchases

An archive photo
An archive photo

MINSK, 18 August (BelTA) – Belarusian enterprises of the manufacturing sector, oil transport industry, and civil engineering industry saved about Br219 million in January-July 2022 by buying the raw materials, components, and goods made of ferrous and non-ferrous metals via the Belarusian Universal Commodity Exchange, the BUCE press service told BelTA.

To compare: savings amounted to Br140 million in January-July 2021. The BUCE press service attributed the increase in savings to a complex of factors. The key ones are growing trust in the Belarusian Universal Commodity Exchange as a purchase tool and a favorable state of prices on the Russian market from where Belarus imports most of the ferrous and non-ferrous rolled metal products it needs.

The exchange operates at maximum effectiveness if two key conditions are met – high concentration of demand and supply. Major Belarusian enterprises are first and foremost sources of demand in the metal products segment, the press service said. In one trade session they can make deals worth dozens of millions of rubles, this is why reducing the starting price even by 3-5% gives a tangible economic effect. This year Belarusian flagship enterprises have started using the exchange for purchases more actively, thus contributing to higher savings.

The situation on the Russian market of metal products was another important factor. Since traditional target markets are unavailable, many metal producers had to focus on the domestic market. Prices on the Russian domestic market have been steadily falling for the last four months as a result. For instance, average prices for steel pipes and sheet cold-rolled mill products dropped by 10% while prices for hot-rolled sheets and channel beams went down by 2-4%. In these conditions metal vendors that operate via the Belarusian Universal Commodity Exchange try to accommodate buyers. One purchase bid can attract the attention of 6-8 sellers sometimes. This is why prices for the main types of metal products traded via the Belarusian Universal Commodity Exchange dropped by 5% on the average in July. Prices for hot-rolled and cold-rolled sheet products dropped by 7-12%, with prices for steel pipes down by 6-9%.

In January-July 2022 the total sum of savings and additional earnings of Belarusian participants of exchange trade amounted to Br306 million, 13% up from the same period of last year.

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