Zelezara Smederevo might reach maximum production soon – Uncertain future of three companies from chemical sector

Zelezara Smederevo, owned by the Chinese Hesteel, might soon reach and even exceed the maximum production from 2008, as estimated by the authors of the Makroekonomske Analize i Trendovi (MAT) magazine.

– It has turned out that the Chinese are doing a good job, the prices of steel in the world are growing and the plan is to put the second blast furnace in the steel mill into operation, and exceeding the steel production from 2008, before US Steel left Smederevo, therefore no longer seems as unfeasible as it did a year ago – said economist Stojan Stamenkovic.

He said that the year-over-year growth of the production of raw iron, steel and ferroalloy in November in Serbia had reached 43%.

– The production of motor vehicles is 13% lower than the average of the past years, due to occasional halts at Fiat's Kragujevac factory, and there have so far been no indications that there will be a growth – Stamenkovic said.

As he pointed out, the fate of three companies from the chemical sector – Azotara and Petrohemija from Pancevo and MSK Kikinda – is uncertain, as they are experiencing operating problems.

– Neither one of the three companies has so far shown the capability or the possibility of long-term, sustainable operations or improvement of the financial position, so the drop of production in the chemical industry by 6.3% in November can't be considered incidental – Stamenkovic said.

Železara Smederevo d.o.o.

HBIS GROUP Iron & Steel d.o.o. Beograd

FCA Srbija Kragujevac

HIP-AZOTARA d.o.o. Pančevo

HIP-Petrohemija a.d. Pančevo

MSK a.d Kikinda

Hesteel

Fiat

FCA Serbia

Azotara Pancevo

Petrohemija Pancevo

Metanolsko sircetni kompleks Kikinda

production of Steel

Makroekonomske Analize i Trendovi MAT magazine

prices of steel

blast furnace

Stojan Stamenkovic

production of raw iron

production of ferroalloy

production of motor vehicles