Russian Industry News

2009-09-24T11:15:00.000-07:00

Good news for Russia and former CIS Alumina producers

Author: Anton Chernoberezhsky

Good news for CIS Alumina producers are coming for already last 3 months from the London Metal Exchange. The Aluminum prices reaching its maximum of 3300 USD/t in the July 2008 and falling down to 1250 USD/t in February 2009 are steadily growing and have reached September 2009 the level of 1921 USD/t. According to Mr. Alexey Arnautov, RUSAL‘s Director of Aluminum division (interview to most important Russian information agency Interfax in July 2009) the minimum production costs of 1 t of Aluminum worldwide is not able to be less than 1400 USD/t.

RUSAL is the main Russian producer of both Aluminum and Alumina having 12% of entire global output of primary Aluminum and 15% of the world’s Alumina production which operates in 19 countries on 5 continents. RUSAL has reduced Aluminum production in first 6 months of 2009 by 10% (to 1,98 mln tons) and Alumina by 34% (to 3,7 mln.t). But present Aluminum price increase gives a good chance for RUSAL’s Alumina factories (producing raw material Al2O3 or Aluminum Oxide for further Aluminum distillation by electrolyses): Nikolayevsky Alumina plant (Ukraine)- production 1446 thou. tons of Alumina, Bogoslavsky Alumina factory (Siberia, Russia) - 1084 thou. tons, Achinsk Alumina factory (Siberia, Russia) - 1069 thou. tons and Boxitogorsk Alumina factory (St. Petersburg region, Russia) - 156 thou. tons (all the production data relates to 2008 figures according to RUSAL’s Web site).

One other former CIS Alumina independent producer - Pavlodar Alumina plant (present name “Aluminum of Kazakhstan”, design Alumina capacity - 1,5 mln.t/annum , belongs to Eurasian Natural Resources Corporation) according to February 2009 report made by Kazakhstan Institute of World Economy and Politics is planning to increase the production in 2009 by 300 thou.t notwithstanding the crises and start-up a new Aluminum distillation factory in Pavlodar.

Russian experts even as late as July this year were predicting that Aluminum world market prices will stabilize below production costs meaning the collapse of the whole industry. It is great that their forecasts didn't come true.

About the Author:

S. Petersburg located independent business consultant for introduction Western companies to Russian industrial market. Assistance to start and increase your business in Russia and CIS countries (industrial equipment and chemicals for chemical, petrochemical, food, pulp and paper industry, coal washing, ore processing).
Tel. + 7 911 260 63 06
E-mail: ac@ac-consulting.ru
Skype: anton. chernoberezhsky
Website: http://ac-consulting.ru

Article Source: ArticlesBase.com - Good news for Russia and former CIS Alumina producers

2009-09-23T01:37:00.000-07:00

Russia and Other Emerging Markets: Getting Ready to Export

Author: Maxim Sokolov

Starting export business in emerging countries poses a new set of challenges, from assessing export skills and resources to searching for the right target markets.

These are the steps we suggest you should follow:

1. Review the strength of your business at home. Remember that domestic market success doesn't always mean that you will easily extend your business abroad. At the same time, many highly specialized export companies manage to sell almost all their product overseas.

2. Assess your skills and resources to export. The basic thing we ask all our clients is if their company is prepared to make the commitment of money and people for the often long-term development of export markets? If not, exporting may become very risky because it is not just visiting trade shows and collecting business cards. Commitments of resources should extend for at least a two-year period.

3. Find additional resources. Given the fast economic growth of the emerging markets, there are many companies that are successful abroad. But at the same time there are some different factors that exporters need to consider to ensure their export success in the new markets. Because exporting to Russia, Ukraine, Kazakhstan, Azerbaijan and Belarus usually involves legal and commercial risks, you need to become very familiar with customs and trade regulations and certification requirements.

4. Choose you target market. Your export market research should include the following:

- The market is underserved with your product or service

- It is big enough to sustain your business

- The market is able to afford what you are selling

- You have the necessary experience and offer excellent products or services

5. Plan your export market entry strategy. The goal of a strategic plan is to organize your export effort efficiently. Make sure everyone in the company is involved in achieving new goals.

About the Author:
Maxim Sokolov is a trade consultant and Russian market expert. Since he began his career he has helped numerous companies to succeed in Russia, Ukraine, Kazakhstan and other former Soviet countries.

Maxim is Senior Associate for Handelgate Consulting, a leading international trade and investment consulting firm dedicated to export consulting services, company representation and investment consulting services.
Article Source: ArticlesBase.com - Russia and Other Emerging Markets: Getting Ready to Export

2009-09-23T01:07:00.001-07:00

Economy of Russia

Author: Vladimir Gonzalez
Russia Economy

Russia has been developing continuously in the last decade. Now it is world’s sevenths economy, having a PPP at $2,076 trillion. Russia’s vice-Prime Minister, Igor Shuvalov, has high hopes, saying that Russia will become the sixth largest economy on the globe by the end of 2008. Russia’s goal since the fall of the Soviet Union in 1991 was to constantly grow economically. In order to stabilize, an ambitious program of radical economic reforms was initiated by Yeltsin and the economist Yegor Gaidar, his adviser.

Russia’s status in the world substantially grew in power in the ten years that followed 1998’s financial crash. Not since the mid-1980’s has the Kremlin enjoyed such a powerful position as it did in the mid-2000’s. This was possible due to the energy market’s favorable conditions and the intelligent macroeconomic policy of the Russian government put together. This position helped Russia reaffirm itself as a great international power, an autonomous centre of power and control with highly ambitious leaders in the present.

If we were to consider Russian development strategy to 2020, as presented by Medvedev and Putin, we would notice that it is not an actual strategy, but an imprecise layout of the future. Russia is foreseen as the fifth largest world leading economy, as far as GDP is concerned. With the middle class population as the majority and with a ruling party and well-built set of State institutions, Russia vaunts itself as socially sustainable and politically stable.

The service sector contributes a lot to Russia’s gross domestic product, accounting for sixty percent of the total GDP. As far as industries are concerned, the most important ones are: textile, agriculture, construction, food and mining. 95 per cent of Russia’s grain output is provided by four of the 7 federal districts: Volga, Siberian, Southern and Central.

Winter wheat is grown mostly in the Southern and Central districts, which provide a very fertile black soil called chernozem. Rye is cultivated in the north, where soils are not as fertile and winters are quite severe. Every year, winter causes damages to more than 10 per cent of the crops planted in autumn. Plants suffer from soaking, ice crust, and overexposure to snow, frost damage or heaving.

Russia exports oil, manufacturing products and natural gas to the Netherlands, Italy, China and Germany. Its partners of import are Germany, Japan and Ukraine, from which it imports fuel, capital goods and food.

About the Author:
I have studied economics for years and love to write about economic trends and conditions. I write for www.economywatch.com and www.economypedia.com.
Article Source: ArticlesBase.com - Economy of Russia

2009-09-21T09:00:00.000-07:00

Russian Pulp and Paper industry seems to be getting out from decline

Author: Anton Chernoberezhsky

Russia keeps the first place in the world wood reserves (25% of the total volume of woods). Woods are covering about 40% of its territory - 722 mln. hectares. But if we look at the Russian pulp and paper industrial ranking in the world we will find (data PPI) that Russia is producing only 3% of worlds pulp and paper products - 8 times less than USA, 6 times less than China, 2,5 times less Japan. Total 2008 PPI production in Russia according to recent report of RAO Bumprom (Russian Association of Pulp and Paper industry) totaled 9 962,4 thousand tons. But at the same time the economic crises impact on Russian PPI was much less than in European Pulp and Paper industry, as practically all the players on European market according to EUWID Pulp and Paper reported losses in 2009 Jan.- June net profits.

On September 15 the Russian Federal Statistics Service published the report on industrial production Jan. 2009 - August 2009). According to published data the situation in Russian Pulp and Paper industry is improving. 8 month production figures show that market pulp production was 1,3 mln.t - 81% compared to respective period of 2008, board-2,2 mln.t- 88,8%, paper- 2,6 mln.t- 93,5%. First four months 2009 production figures were 74,1, 84,2 and 90,5% respectively.

But the situation is not equal at every plant. According to RAO Bumprom factories located in Arkhangelsk region in Jan. - July 2009 reduced pulp and market pulp production by 19,2 and 31,4% respectively, paper production was down by 22,9%.

At the same time many Russian Pulp and Paper factories managed to maintain 2008 level of production. Good results were shown by Svetogorsk plant (International Paper), Siktivkar Complex (Mondi paper), Ust-Ilimsk and Bratsk plants (Ilim group) et ali.

Now it is the right time to step into the Russian industrial market with new equipment and technologies. For professional assistance and more information, please, visit AC-Consulting-Russia website.

About the Author:

S. Petersburg located independent business consultant for introduction Western companies to Russian industrial market.
Assistance to start and increase your business in Russia and CIS countries (industrial equipment and chemicals for chemical, petrochemical, food, pulp and paper industry, coal washing, ore processing).

Tel. + 7 911 260 63 06

E-mail: ac@ac-consulting.ru

Skype: anton. chernoberezhsky

Website: http://ac-consulting.ru

Article Source: ArticlesBase.com - Russian Pulp and Paper industry seems to be getting out from decline