M E T A L L U R G Y I N B U L G A R I A

i n 2 0 0 9

SOFIA, 2010

BULGARIAN ASSOCIATION OF THE

METALLURGICAL INDUSTRY

1309 SOFIA Aleksander Stambolijski blv.205, fl.1, rooms 111, 118 and 119

Tel./Fax: +359 2 920 37 39; + 359 2 920 40 47,

e-mail bcm@mb.bia-bg.com

www.bcm-bg.com

2

I n t r o d u c t i o n

The Bulgarian Association of Metallurgic Industry (BAMI) was founded

in 1992 as Branch Chamber of Ferrous and Non-Ferrous Metallurgy. At the

General Assembly in 2007 changes in the Statute were passed including in its

name. BAMI is a non-commercial association of employers of the companies

producing and/or trading in metals and metal products and articles, refractory

products and materials, as well as carrying out scientific research,

engineering and repair activities in the field of metallurgy.

As on 31.12.2009 the total number of BAMI’s regular members, which

the Association represents, is 42 /forty-two/ companies. Tree technical

universities are also associated members of BAMI: University of Chemical

Technology and Metallurgy – Sofia, Technical University – Sofia, and Ruse

University “Angel Kanchev” – Ruse.

The annual edition of “Metallurgy in Bulgaria” issued regularly since

1994 aims to inform the members and a large number of specialists in

Bulgaria and, through the English edition – also abroad, about the

development of the branch, the results from the production activities and

indices during the year in reference of both its members , and the whole

metallurgical sector.

Traditionally, the Annual consists of three parts. In the first part a short

review (based entirely on statistic and customs data) is made of the Bulgarian

economy during the respective year. The trend of its development and basic

macroeconomic indices are presented. Based on the available information, the

place, importance and share of the metallurgical industry are specified in the

country statistical data for energy consumption, wage level, sales on foreign

markets, total foreign trade balance of metallurgical products.

The other two parts include a short description of the Bulgarian

manufacturers from the ferrous and non-ferrous metallurgy respectively. Basic

indices and annual results from the activity are presented. A comparison of the

customs data on import and export of metals and that of the producer

companies is made, and wherever possible the reasons for the discrepancies

found out are pointed out.

Bulgaria is a country where the metallurgic capacities for production of

ferrous and non-ferrous metals, of pressed/rolled metal and products out of

them were built in the sixties of last century. In the past years a major part of

them have been renewed in technology and production and new capacities,

both in minin and manufacturing metallurgical industry.

3

The data about the quantity of ferrous and non-ferrous metals produced

related to the population of Bulgaria shows that they can be compared to both

the average EU level, and world per capita production. For the sake of

objectivity it must be pointed out that the indices are much higher for the

production volumes in non-ferrous metallurgy. With 0.119 % of world

population, the basic types of non-ferrous metals produced in our country

(copper, lead, zinc and by products) as a share of world production are many

times higher. The relative share of Bulgarian production in the European

Union is high. By several technological and qualitative indices the

achievements of Bulgarian companies match the best practice in the world.

The Bulgarian Association of the Metallurgical Industry is a member of

two European organizations: the organization of producers of ferrous metals -

EUROFER, and the one of the producers of non-ferrous metals –

EUROMETAUX. The chairman of the Board of BAMI is a member of the

Executive Committee of EUROMETAUX. We also have a representative in the

Strategical Development Group, and in the Energy and Climate Change

Committee as well.

Having in mind the accession of Bulgaria in the European Union, the

outlook of this paper had to be changed. More and more attention is paid to

the indices in the metallurgical industry that can be compared with these in

the other member-states or with the average for the Community.

The editing team apologizes to the members and everybody using the

yearbook for any omissions or data clashing with the official statistics. Our

aim every year is to limit them and bring them to a minimum.

All opinions and recommendations aiming to improve the annual will be

accepted with gratitude and taken into consideration in the preparation of the

next editions.

The editing team expresses a particular gratitude to all leaders and

specialists from the member-companies of BAMI for the data they made

available about the production and sales, for the information received about

the investments made and the development of capacities.

We are truly thankful to external organizations and persons who

assisted us in finding other important information, necessary for the

compilation of “Metallurgy in Bulgaria in 2009”.

4

FULL MEMBERS OF BAMI

“Kremikovtzi” JSC “Aurubis Bulgaria” JSC

“Tepro Metal” PLC “KCM” JSC

„Stomana Industry” JSC “Intertrust Holding” JSC

„Sofia Med” JSC „OCK” JSC

„Stilmet” JSC - „Interpipe” JSC

“Promet Steel” JSC -„Steel Commodities Corp.”

“Helios Metalurg” Ltd “Alkomet” JSC

“Precise Inter Holding” JSC “Klöckner Metalsnab” JSC

“Evrometal” JSC “Monbat” JSC

“Jiti” JSC “Shamot” JSC

„Trud” JSC “RМО-Metalurgremont” JSC

“KG” Ltd “Bulmet & Co” JSC

“Bamex” JSC “Refran” PLC

“IPO” Ltd “Stam Trading“ JSC

„Rimpex” JSC “Extraction of Non-ferrous Metals” JSC

„Polimet Import-Export” Ltd Sofia Metal” Ltd

“Kometech” Ltd “Armex Trade” Ltd

“Rudmetal” JSC “Komotech-Ko” JSC

“Industrialna Toplot6cehnica” JSC “Il Met” PLC

“Ressurs Management” JSC “Refrakem” PLC

„Mulit” Ltd “Anils” JSC

“Ognyanovo K” JSC “Konvintrade Bulgaria” Ltd

ASSOCIATED MEMBERS OF BAMI

University of Chemical Technology and Metallurgy, Sofia

Technical University, Sofia,

Ruse University “Angel Kanchev”, Ruse

MEMBERS OF THE EXECUTIVE BOARD

Corporate bodies:

“Aurubis Bulgaria” JSC “Monbat” JSC

“Evrometal” JSC “Precise Inter Holding” JSC

“Tepro Metal” PJSC “KCM” JSC

“Klöckner Metalsnab” JSC “Alkomet” JSC

“Intertrust Holding” JSC “Promet Steel” JSC

“RМО-Metalurgremont” JSC “Shamot El Pe” JSC

“Helios Metalurg” Ltd

Chairman of the Board – ANTON PETROV /“Tepro Metal” PLC/

Executive Director – Politimi Paunova

5

The following abbreviations have been used in the Annual:

GDP – Gross domestic product by prices of the year in reference.

GVA – Gross value added at base prices

EFTA – European Free Trade Association

CEEC – Central and Eastern European Countries

CIS – Commonwealth of Independent States (formerly the USSR)

OECD – Organization for Economic Cooperation and Development

RFM – Rolled ferrous metals (rolled steel)

HR – Hot-rolled (rolled steel)

CR – Cold-rolled (rolled steel)

KCM – “Plant for non-ferrous metals” JSC, Plovdiv

OCK- “Tin-zinc plant” JSC, Kurdjali

HNFM – Heavy non-ferrous metals (R/P copper and brass)

6

CONTENTS

Page:

Introduction, members and leadership of BAMI ……………………………………….3

Section one –The Bulgarian economy in 2009.................................................................9

1.1 Population, labor market, salary ..............................................................................9

1.2 Productivity, GNP energy consumption......................................................................11

1.3 Foreign trade exchange, import and export of goods..................................................13

1.4 Basic macroeconomic indices......................................................................................18

Section two –Ferrous Metallurgy in Bulgaria.................................................................21

2.1 Production of ferrous metals and rolled products.....................................................21

2.1.1. Crude steel production.............................................................................................21

2.1.2. Production of rolled ferrous metals and finished products......................................23

2.2 Trade turnover and consumption of RFM and finished products..............................28

2.2.1. Import of scrap, RFM and finished products..........................................................28

2.2.2. Export of scrap, RFM and finished products..........................................................33

2.2.3. Foreign trade turnover in RFM and finished products...........................................41

2.2.4. Sales of RFM and finished products on the home market.......................................42

2.2.5.Real home consumption of steel products …………………..…………………….44

2.3. Production and consumption of refractory and other materials……………………46

Section three – Non-ferrous metallurgy in Bulgaria .....................................................49

3.1. Production of non-ferrous metals...............................................................................49

3.1.1. Production of anodic and electrolytic copper ……………………….....................49

3.1.2. Raw materials base and production of lead........................................................... 51

3.1.3. Raw materials base and production of zinc............................................................52

3.1.4. Production of recycled, precious metals and non-ferrous byproducts, alloys and

chemical products.…………………………………..............................................55

3.1.5. Production of rolled/pressed non-ferrous metals and alloys …………....………..57

3.2. Trade turnover and consumption of non-ferrous metals and alloys. ........................61

3.2.1. Import of non-ferrous metals and finished products ............................................61

3.2.2. Export of non-ferrous metals and finished products ............................................63

3.2.3. Foreign trade turnover of non-ferrous metals …....................................................65

3.2.4. Home consumption of non-ferrous metals and alloys …. .....................................66

3.2.5 Real consumption of non-ferrous metals and alloys…………..…………………68

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SECTION ONE

BULGARIAN ECONOMY IN 2009

(SHORT REVIEW)

1.1. POPULATION, LABOUR MARKET, SALARY

At the end of 2008 the population of Bulgaria totalled 7 563 710. This

figure takes into account the migration, so it refers to the number of persons

with Bulgarian citizenship with a permanent address in this country.

Compared to the preceding year the population dropped by 42 841 /0.56

%/. The population structure during the last three years is shown on Table 1

Table 1

Breakdown of population by categories, thousand people

Population

groups:

2007 2008 2009

‘000 % ‘000 % ‘000 %

City/town population 5 403.2 70.7 5408.3 71.1 5 401.2 71.4

Village population 2 237.0 29.3 2198,3 28.9 2 162.5 28.6

Born alive 75.349 77.712 80.956

Deceased 113.004 110.523 108 068

Population growth -37 655 -0.50 -32.811 -0.43 -27.112 - 0.35

Under working age 1 023.8 13.4 1 100.0 14.5 1 099.0 14.5

At working age 5 294.7 69.3 4 806.0 63.2 4 773.9 63.1

Over working age 1 321.7 17.3 1 700.6 22.3 1690.7 22.4

Total: 7 640.2 100.0 7606.6 100.0 7 563.7 100.0

Source : Statistical data of NSI, 2010

The population in cities and villages goes down in 2009, but the relative

share of people living in cities shows a steady upward trend. This is due not

only to the migration from the villages, but also to the higher birth rate and

lower mortality rate in bigger towns and cities. In 2008 the relative share of

urban population is 71.1 %, and in 2009 – 71,4 % or growth of 0.3 %.

During the last years a trend of increased birth rate and an improvement

of the absolute values of the negative percentage of the population growth is

observed, but the population continues to decrease. Taking into account the

processes of emigration and immigration, Bulgaria’s population went down by

0.56 % compared to the previous year (0.44 % in 2008).

Steady and worrying is the trend for a drop in the number of children

/under working age/ and the population at working age. Despite the fact that as

8

a relative share of the population they preserve their values in the last two

years, the absolute number of children went down by 1 000 in 2009 compared

to 2008. The number of people at working age decreased by 32.1

thousand. The average age of population in 2001 is 40.4 years, whereas in

2008 it is 41.7, and in 2009 – 41.8.

The average life expectancy during the period 2006 – 2008 is 69.51

years for males and 76.64 years for females. Town population has a longer life

expectance than the rural population – 73.42 to 71.82 years.

Despite the slight improvement trend of the demographic parameters

such as birth rate approaching that of some European countries (Slovenia,

Hungary, Portugal) Bulgaria registered the highest negative population

growth.

Data about the average annual employment figures by

labour/employment contracts, about the income of employees and some social

parameters are presented on Table 2. The comparison of the indices for

employees in 2009 and 2008 reveals the following:

- the number of employees / according to National accounts / goes down

by 112 780 people, and that of registered unemployed people goes up by

47 261 people;

- the average annual unemployment rate, according to NSI data, is 6,8 %

or by 1,2 % higher than in 2008.

These figures show the impact of the world economic crisis on some

sectors of the Bulgarian industry, the drop in which started already in the

second half of 2008. In spite of that there is an increase in the income of

employees, and the average salary in the country is by 47,4 leva higher than

the previous year, or by 108,7 %. The growth in the public sector is higher

than that in the private and it is respectively 109,3 % and 107,4 % for them.

The average salary in metallurgy, compared to the average for the

country, is nearly twice higher. In recent years the metallurgical branch,

which includes production of metals, rolled/pressed metal and finished

products, takes one of the first places of all economic activities regarding

the average salary and insurance income of the employees. For the

country only in the production of oil and gas, the production of refined oil

products, and the production and distribution of energy as well the

payment is higher.

This trend is preserved in 2010 as well and according to data from

NSSI, in the first half of this year the average monthly insurance income in the

sector is 1 052 leva, and thus takes fifth place in the whole economy of the

country. If we exclude the Energy sector, in the first few months of the year

only the average income in production of refined oil products is higher, and

the payment in metal production is about the same.

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Table 2

Average annual number of employees, unemployment rate, inflation

Indices

2007 2008 2009

Average annual number of

employees (national accounts).

3 714 041 3 835 569 3 722 789

Average annual number of

registered unemployed people 286 980 233 719 280 980

Average annual

unemployment rate (NSI), % 6,9 5,6 6,8

Average monthly salary of

peopled employed by

labour/employment contracts

for the country, leva

430,6 544,8 591,2

- public sector

- private sector

521,3

396,7

650,8

509,5

711,2

547,2

Average monthly salary in

the activity “Production of

basic metals”, leva

877,9 1 020,8 1 152,3

Source:Ministry of finance, Agency for economic analyses and forecasts,

06.2010, NSSI, Report by NCEA, 2010

1.2. PRODUCTIVITY, GDP, ENERGY CONSUMPTION

During the last few years in Bulgaria a constant growth in the physical

volume of the gross domestic product – GDP and the gross value added –

GVA is reported. In 2009 a change began when there was a drop of 472

million leva compared to the GDP report in 2008.

The data for the last four years are presented on Table 3.

In 2009 industry, including the production and distribution of electricity,

gas and water, no longer forms the highest gross domestic product /GDP/.

Services like finance, real estate and insurance, as well as trade, nutrition and

transport report higher values.

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Table 3

GDP and GVA by sector and groups, million leva

Indices:

2006

2007

2008

2009

GNP at current prices, million

leva, incl.:

- agriculture and forestry

- industry, energy

- construction

- trade, nutrition,

transport and

communications

- finance, insurance,

real estate and other

business services

- government

- taxes

49 361

56 520

66 728

66 256

3 341

12 072

4 763

12 675

13 659

8 992

10 755

Gross added value /GVA/,

million leva

- agrarian sector

- industry

- services

40 350

3 444

12 473

24 433

46 401

2 898

14 985

28 518

54 851

4 001

16 752

34 098

55 502

3 341

16 835

35326

Source: Ministry of finance, Agency for economic analyses and forecasts, 06.2010

The gross value added /GVA/ is also mainly formed by the employees

in the service sector – 35 326 thousand leva, followed by industry – with

106 835 thousand leva, and the lowest figures are for the employees in the

agrarian sector – 3 341 thousand leva.

According to data from OECD the gross domestic product generated in

Bulgaria is nearly eight times lower than that in Greece, more than 10 /ten/

times than in Poland, more than 4 times lower than in the Czech Republic,

about 3 /three/ times the GDP in Hungary and twice smaller than in Slovakia.

The highest GDP in the EU /27/ is reported in Germany, followed by Great

Britain and France.

The last energy balance, published by NSI, is for the year 2008.

According to the data reported in it, the total final energy consumption in the

country is 9 419 Ttoe, marking a drop of 1.2 % compared to 2007. The

consumption by industry is 3 357 Ttoe or 35.64 % of the total quantity. A drop

11

of 7 % is reported for the year, representing 254 Ttoe, whereas in the previous

year there was growth of 2.3 % in energy consumption.

The total consumption in metallurgy is 630 Ttoe, which represents

18,8 % of the industrial consumption (795 thousand tons and a share of

21.5 % in 2007). With this drop, from second place in energy

consumption, the sector now ranks third – after the chemical industry

and the production of non-metal mineral raw materials. Compared to the

total energy consumption in the country, the share of metallurgy in 2008

compared to 2007 goes down from 8.2 % to 6.7 %.

Consumption is distributed between ferrous and non-ferrous metallurgy

to75 % and 25 % respectively, whereas in 2007 this relation was 80 % to 20

%. Lower consumption is reported in both subsectors, the drop in ferrous

metallurgy being bigger – about 25 % (151 Ttoe), and in non-ferrous – about 9

% (15 Ttoe). These indices reflect the upcoming impact of the global crisis and

the reduction of production at “Kremikovtzi” JSC.

Regarding the consumption of natural gas, used as an energy resource

only (excluding its utilization as a raw material in the chemical industry),

metallurgical production preserves its place as the largest industrial

consumer (27.6 %). Of this quantity ferrous metallurgy has a 92 % share,

whereas the consumption in non-ferrous metallurgy is low. In 2008 the

gas consumption for the production manufactured in “Kremikovtzi” JSC

is included. Having in mind the reduction of production in this company, the

total natural gas consumption in the metallurgical sector has sharply gone

down since 2009.

Other large industrial consumers of natural gas are respectively the

sectors “Non-metal mineral products” with a share of 26.2 % of the total

consumption and “Chemical industry” – with 17.2 %.

1.3. FOREIGN TRADE EXCHANGE, IMPORT AND EXPORT OF

GOODS

The foreign trade exchange of goods and services which Bulgaria has

reported over the past five years is presented on Table 4.

After the trend in the last few years in Bulgarian economy for a steady

growth of the export and import of goods and services, in 2009 a sharp drop

in these figures, compared to the previous year, is observed – by 17 317

million leva or 32 % for import and 18 % (- 7 241 million leva) for export.

Despite the bigger drop of the values of imported goods in comparison

to these of the exported, the foreign trade balance continues to be negative (-10

billion leva). The foreign trade balance of services remains positive and a

growth of 112 % is reported in 2009, reaching nearly 5 billion leva.

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Table 4

Foreign trade balance, million leva

Indices: 2005 2006 2007 2008 2009

Import - total 32 692 41 131 48 317 55 552 38 235

- goods CIF 28 688 36 142 42 788 49 549 33 006

- services 4 004 4 989 5 529 6 003 5 229

Export - total 25 766 31 861 35 831 40 351 33 110

- goods FOB 18 515 23 493 26 352 29 880 22 882

- services 7 251 8 368 9 479 10 471 10 228

Total turnover 58 458 72 992 84 148 95 903 71 345

- goods 47 203 59 635 69 140 79 429 55 888

- services 11 255 13 357 15 008 16 474 15 457

Foreign trade balance -6 926 -9 270 - 12 486 - 15 201 - 5 123

- goods -10 173 -12 649 - 16 436 - 19 669 - 10 124

- services + 3 247 + 3 379 + 3 950 + 4 468 + 4 999

Source: NSI, Standard foreign trade classification, 2010

Agency for economic analyses and forecasts, 2010

Almost half of the EU (27) countries have a negative trade balance, and

so do the last affiliated – Bulgaria and Romania.

The biggest exporter among EU countries and with a positive trade

balance of nearly 300 billion USD is Germany.

In recent years from the major world economies a positive foreign trade

results are reported by countries like China (over 250 billion USD), Russia

(about 150 billion USD), Japan and Canada.

The biggest foreign trade turnover but also with the biggest deficit

during the last few years is reported by the USA, their deficit reaching 800 –

900 billion USD.

The import of goods in Bulgaria by groups of countries and by branches

of products is shown on Table 5, and the export – on Table 6.

The total import of goods in 2009 has gone down by 16,5 billion leva

or by 33 %. By sectors and branches the most significant drop is in the import

of machines and equipment (by 40 %, about 6 billion leva respectively), which

is related to the economic recession and the lack of investments. Other groups

affected by the crisis and reduced production are: fuels (a drop of 39 % in the

import), raw materials (a drop of 32 %) and finished processed products and

articles.

13

Table 5

Import of goods by groups of countries and branches , million Leva

Groups of countries /

sectors

2006

Million leva

%

2007

Million leva

%

2008

Million leva

%

2009

Million leva

%

European Union 17 102 47 25 027 59 28 026 57 19 790 60

CIS 8 094 22 8 599 20 11 612 23 6 601 20

OECD 6 273 17 7 807 18 8 328 17 2 809 9

CEEC 4 249 12 768 2 830 2 З 543 10

EFTA countries 421 1 587 1 452 1 263 1

Other countries 4 - - -

IMPORT - total,

incl. by product branches

36 142 100

42 788 100

49 549 100

33 006 100

Agriculture and food

products, drinks and tobacco 1 546 4 2 298 5 3 142 6 3 102 9

Mineral Oils, Lubricants etc.

7 885 22

8 446 20

10 725 22

6 600 20

Manufactured Products, by

kind of material

7 262 20

8 846 21

9 622 20

5 684 17

Machines, Equipment and

Means of transport 10 484 29 12 592 29 14 634 30 8 845 27

Others, incl.:

8 965 25

10 606 25

11 426 22

8 775 27

- metals and metal

products

2 622 7

3 293 8

42 9

1 780 5

Source: NSI, Standard foreign trade classification, 08.2010

Customs information, processed by BAMI

The import of metals and metal products reports a large drop as

well – 2.4 billion leva (42% compared to 2008) and their share in the total

import decreases from 9 % to 5 %.

The only group which keeps the value of the import compared to the

previous year is agricultural goods, food products and drinks, their share going

up from 5 % to 9 %.

The European Union in 2009 again год. preserves its major place in the

import with a share of 60 %, but there is a decrease in the values of the

imported goods – by over 8 billion leva (29 %) in total. A higher percentage in

the drop (nearly 57 %) is observed in the import from CIS countries, chiefly

Russia and Ukraine, which are also the biggest suppliers of raw materials and

fuel in the country.

In 2009 goods from 167 countries were imported /2008 – 168 countries/.

14

According to the data in Table 6 the export of goods in 2009 reports a

considerable drop as well – by nearly 7 billion leva (23,4 %). This value is

by 9,5 billion leva less than the reduced during the year import of goods. This

results in a lower foreign trade deficit which is reduced almost in half – from

19,7 billion leva in 2008 to 10,1 billion leva in 2009. Table 6.

Export of goods by group of countries and branches, million leva

Groups of countries /

sectors

2006 2007 2008 2009

Million

leva %

Million

leva %

Million

leva

% Million

leva

%

European Union 13 263 57 15 970 61 17 974 60 14 855 65

CEEC 4 258 18 5 027 19 6 288 20 4 219 18

OECD 4 742 20 3 590 14 3 892 13 2 414 11

CIS 852 4 1 567 5 1 870 6 1 180 5

EFTA countries 263 1 198 1 232 1 214 1

Other countries 115 - - - -

IMPORT - total,

incl. by product branches

23 493

100

26 352

100

29 880

100

22 882

100

Agriculture and food

products, drinks and tobacco 1 706 7 1 954 7 3 040 10 3 051 13

Mineral Oils, Lubricants etc.

3 636

16

3 887

15

4 837

16

2 957

13

Manufactured Products, by

kind of material

7 144

30

7 749

29

7 872

26

5 264

23

Machines, Equipment and

Means of transport

3 164

14

3 948

15

4 772

16

3 853

17

Others, incl.:

7 843

33

8 814

34

9359

32

7 757

34

- metals and metal products 5 686 24 5 906 22 6094 20 3 628 16

Source: NSI, Standard foreign trade classification, 08.2010

Customs information, processed by BAMI

Note: The composition of the groups of countries in tables 5 and 6 changes over the

years, so the data are not absolutely comparable. This is related to the

enlargement of the EU and the changes in the membership of the different

countries in the structures of the international trade organizations.

The drop in export in percents for the respective groups of countries is

the lowest for the member-countries (only 17 %), and because of this the

share of export for the EU goes up from 60 % to 65 %. This makes the EU

the most reliable and firm market for the main goods of the Bulgarian industry.

15

The drop in export of goods for the CIS countries is significant – 37 %.

The export data for 2009, which is indicative of the size of the global

economic crisis and its impact on Bulgarian economy, show that the presence

of Bulgarian goods out of the EU, in third countries, is not satisfying. Even

regarding the regional markets, including some of the CEEC countries, as well

as these in CIS, the export of industrial goods from the country goes down by

35 % on the average, which is twice higher than the percentage of the drop for

the EU.

Expanding the possibilities for export of Bulgarian goods depend not

only on their competitiveness, but also a lot on leading a purposive state

foreign trade policy with these countries.

The export structure by product branches has not changed significantly

over the specified period but the values go down in all sectors, excluding the

agriculture, food products, drinks and tobacco sector. Although they report no

growth in the value of export, their share goes up by 3 % (from 10 % to 13 %

in the total economic export).

Over the whole specified period the relative share of metals (primary and

secondary) and metal production in the export of the country is high –

over 15 %. Despite the drop in the total production, respectively in the export

of the metallurgical companies and especially by “Kremikovtzi” JSC, in 2009

again compared to the other industrial activities the metallurgical branch has

the biggest percentage in the export of goods of the country.

The values of the ferrous and non-ferrous metals exported go down

considerably – by 2 billion leva compared to 2008 , but a drop is also

observed in the import values by 2,4 billion leva. Because of this from the

foreign trade exchange of these goods the positive balance is preserved

and in 2009 it amounts to 1 848 million leva.

In 2009 Bulgarian foreign trade partners regarding the export are 196

countries (196 in 2008).

The data on Tables 5 and 6 show that the global crisis has not had the

same negative impact on the foreign trade activities of all economic sectors.

The negative impact on agriculture, food and drinks production is the smallest.

The reported import and export values there equal the ones from the previous

year, 2008, but for these activities the trend for growth in the indices has been

ceased as well.

The big negative balance is formed by the countries that Bulgaria has

the largest trade turnover. The export of goods to the CIS countries continues

to represent a small share in 2009 – only 5 % compared to 20 % share in the

import. The trade exchange between Bulgaria and the CIS countries (chiefly

Russia and Ukraine) and the European Union mainly form the negative foreign

trade balance.

16

1.4. BASIC MACROECONOMIC INDICES

The macroeconomic indices of the country until 2008 were changing

into a positive direction, reporting a steady growth in their values. In 2009 a

drop is already present, and the data for the last six consecutive years are

presented on Table 7. The indices are defined with accepting the previous

year = 100. Table 7

Basic macroeconomic indices and data

Indices: 2004 2005 2006 2007 2008 2009

Gross Domestic Product, %

Real annual growth 6.6 6.2 6.3 6.2 6,0 - 5.0

Gross Value Added, %

Index of physical volume 4.8 5.3 6.6 6.3 6.1 - 3.8

Average inflation rate, % 6.2 5.0 7.3 8,4 12.3 2.8

Unemployment level, %

Average for the period

11.8 9.9 8.4 6.9 5.6 6.8

Export of goods and services, % 12.7 8.5 8.7 5.2 2.9 -9.8

Import of goods and services, % 14.5 13.1 14.0 9.9 4.9 -22.3

Basic interest rate 2.6 2.0 2.7 3.9 5.1 2.4

Direct foreign investments,

Million Euro 2 735.9 3 152.1 6 221.6 9 051.8 6 696.5 3 212.5

Source: Statistical data of NSI, 2010

Agency for economic analyses and forecasts, 06.2010

The data about the basic economic indices and the development of

Bulgarian economy in 2009 are characterized by the following:

1. The steady growth of GDP and GVA from the previous years was

ceased. The global economic crisis, which started in the second half of 2008,

affected the Bulgarian economy and in 2009 there is a drop in all basic

macroeconomic indices.

2. The export and import of goods and services goes down, but the

import has a higher negative rate. This leads to a reduction in the volume of

foreign trade deficit of the country, which was reduced by about 50 % during

the last year.

3. Regarding the foreign trade turnover of metals and metal products a

positive final balance of 1.8 billion leva is still formed and this has a

positive impact on the foreign trade macroeconomic values, reported by the

country. The positive balance is already formed by the non-ferrous

17

metallurgy only and in 2009 it reaches 2 billion leva. Ferrous metallurgy for

the second year reports a negative foreign trade balance - 146 million leva in

2009 and – 865 million leva in 2008.

4. The average annual inflation rate is the lowest for the whole period in

reference, which is related to the ongoing through the year processes of

economic recession and reduced consumption.

5. During the same period of one year, characterized by a drop in GDP

and GVA, a growth of 108.7 % is reported in the average monthly salary of

people employed in economy by labour/employment contracts. In the public

sector the growth is by 109.3 %, and in the private – 107.4 %. The measures

for overcoming the economic crises influence the increase in the private

sector; they also foresee restructuring of companies through dismissing people

with lower qualification degrees, and a lower payment respectively.

6. Compared to the previous three years, in 2009 the direct investments

reported are highly reduced. For the year they amount to 3 312,5 billion

Euros, representing 48 % of those in 2008 ( 3 484 million Euros less), and

compared to 2007 they went down by 5 839.3 million Euros and represent

only 35 % of them.

The direct foreign investments in the industrial sphere have an

insignificant share of the total investments in the country. They are much

less than those in services and real estate and do not exceed 30 % of the

total value.

By sectors and economic activities, the most foreign investments are

in the metallurgical branch. The share of these in the non-ferrous

metallurgy is times higher than these in the production of steel and steel

products. This is due to the higher number of companies in this activity

and its rapid development after privatization of the factories. Nowadays,

the non-ferrous metals production in the country significantly exceeds the

average EU level.

18

SECTION TWO

FERROUS METALLURGY IN BULGARIA

2.1. PRODUCTION OF FERROUS METALS AND ROLLED FERROUS

METALS

The production of steel and steel products in Bulgaria is a strategic

sector of industry represented basically by 7 companies – members of BAMI:

– “Kremikovtzi” JSC, “Stomana Industry” JSC, “Promet Steel” JSC, „Helios

Metalurg” LTD, “Precise Inter Holding” JSC, „Jiti” JSC, and „Interpipe” JSC.

In 2008 the biggest enterprise in ferrous metallurgy - “Kremikovtzi”

JSC ceased its production of coke, pig iron and converter steel, and the

production of electric steel was highly reduced.

These negative circumstances are affecting the data about the production

and sale of ferrous metals of “Kremikovtzi” JSC as well as of the country in

general.

2.1.1. CRUDE STEEL PRODUCTION

Producers of liquid steel (only in electric furnaces) in Bulgaria in 2009

are “Kremikovtzi” JSC and “Stomana Industry” JSC.

The quantities of crude steel produced during the last few years by type

of process and by companies are shown in Table 2.1 and on Figure 2.1.

The total volume of the steel produced in the country is by 603.3

thousand tons or 45.4 % less compared to 2008.

The data show that in 2009 the total steel production at

“Kremikovtzi”JSC (converter and electric steel) went down sharply – more

than three times compared to the production in 2008.

This is due to the suspended production of the oxygen converters at

“Kremikovtzi” JSC at the end of 2008. An increased volume of the steel

produced in electric furnaces operating exclusively with their own,

technological and dormant scrap is reported.

A decrease of 258.3 thousand tons or about 31.0 % is reported at

“Stomana Industry” JSC.

19

Table 2.1

Steel production in Bulgaria, thousand tons

Process: Companies: 2006 2007 2008 2009 2009/2008

+/- %

OC “Kremikovtzi” JSC 1 154.9 1 027.0 428.0 - - -

EF

“Stomana Industry”

JSC 692.2 689.4 839.2 580.9 -258.3 69.2

“Kremikovtzi” JSC 254.4 191.8 61.8 144.8 83.0 234.3

Total EF 946.6 881.2 901.0 725.7 -175.3 80.5

Total by

companies “Kremikovtzi” JSC 1 409.3 1 218.8 489.8 144.8 -345.0 29.6

“Stomana Industry”

JSC 692.2 689.4 839.2 580.9 -258.3 69.2

Total for the country 2101.5 1908.2 1 329.0 725.7 -603.3 54.6

Continuous

casting

“Stomana Industry”

JSC 692.2 689.4 839.2 580.9 - 258.3 69.2

“Kremikovtzi” JSC 534.9 874.3 463.2 131.4 -331.8 28.4

Total 1 227.1 1 563.7 1 302.4 712.3 590.1 54.7

Source : Company data

Figure.2.1

0,00

200,00

400,00

600,00

800,00

1 000,00

1 200,00

1 400,00

1 600,00

2006 г. 2007 г. 2008 г. 2009 г.

"Кремиковци" АД

"Стомана инд."АД1

1 409.3

692.2

1 218.8

689.4

489.8

839.2

144.8

580.9

Steel production at “Kremikovtzi” JSC and “Stomana Industry” JSC

Steel produced in Bulgaria in 2007 makes up 0.165 % of world

production, 0,100 % in 2008 and 0.059% in 2009. Compared to the EU

these figures are: in 2007 – 0.962%, in 2008 – 0.671 %, and in 2009 –

0.521 %.

20

There is a trend of reducing the share of Bulgarian steel production both

on a world, and European scale.

The utilization of the capacities, producing electric steel in 2009 is

48.7% (having a total capacity of 1 490 thousand tons in the two companies).

The level of utilization of the capacities for production of electric steel

in 2009 by company is as follows: “Kremikovtzi” JSC – 27.3 % and “Stomana

Industry” JSC – 60.5 %, whereas in 2008 in the two companies it was

respectively 11.6 % and 87.4 %.

In 2009 a drop of the quantity of continuous casting by 590.1 thousand

tons or 45.3 % less than in 2008 is reported. This is due to the smaller quantity

produced both at “Kremikovtzi” JSC, and at “Stomana Industry” JSC as well.

In 2008 the share of continuous cast steel in the total steel produced by the

companies is 98.1 %, i.e. all the liquid steel is produced by continuous casting.

Mainly non-alloyed carbon steel is produced in Bulgaria, and,

occasionally, single casts of alloyed steel.

2.1.2. PRODUCTION OF ROLLED FERROUS METALS AND

FINISHED PRODUCTS

The production of rolled ferrous metals (RFM) in Bulgaria during

the last four years by types of production and producer companies is shown on

Table 2.2 and figures 2.2 and 2.3.

The analysis of the data in the table indicates the following:

The trend of reducing the production of RFM from 2008 continues in

2009, which can be explained with the global economic crisis and the

reduction of consumption of rolled ferrous metals in the country. The

total quantity of these products in 2009 is by 42.3 % lower than in 2008.

There is a drop in the production of rolled ferrous metals in all the four

companies, but the most significant it is in “Kremikovtzi” JSC. This is

the second year after 2008 that in “Kremikovtzi” JSC cold rolled flat

metal is not produced.

21

Table.2.2

Production of rolled ferrous metals (RFM) rated by assortment, thousand tons

Source: Company data

Figure.2.2

0

200

400

600

800

1000

1200

2006 2007 2008 2009

"Кремиковци" АД

"Стомана инд."АД

"Промет стиил"АД

Хелиос Металург"ООД

Production of rolled ferrous metals by companies, thousand tons

Type of

rolled

metal:

Companies:

2006

2007 2008 2009

2009/2008

+/- %

Blooms,

slabs and

blanks

“Kremikovtzi”JSC 259.0 142.6 - - - -

“Stomana Industry” JSC 168.2 143.7 92.1 33.4 -58.7 36.3

Total 427.2 285.3 92.1 33.4 -58.7 36.3

HR long

“Promet Steel” JSC 359.7 321.1 462.9 278.3 -184.6 60.1

“Stomana Industry” JSC 54.8 135.0 368.4 348.9 -19.5 94.7

“Helios Metallurg” Ltd 15.0 48.5 53.2 38.0 -15.2 71.4

Total 429.5 504.6 884.5 665.2 -219.3 75.2

HR flat

“Kremikovtzi”JSC 884.3 1 006.4 466.2 137.4 -328.8 29.5

“Stomana Industry” JSC 329.8 347.6 328.3 165.9 -162.4 50.5

Total 1 214.1 1 354.0 794.5 303.0 -491.2 38.2

HR metal

(total)

“Promet Steel” JSC 359.7 321.1 462.9 278.3 -184.6 60.1

“Kremikovtzi”JSC 884.8 1006.4 466.2 137.4 -328.8 29.5

“Stomana Industry” JSC 384.6 482.6 696.7 514.8 -181.9 73.9

“Helios Metallurg” Ltd 15.0 48.5 53.2 38.0 -15.2 71.4

Total 1 644.1 1 858.6 1 679.0 968.5 -710.5 57.7

CR flat “Kremikovtzi”JSC 104.2 41.6 - - - -

Total by

companies

“Kremikovtzi”JSC 988.5 1 048.0 466.2 137.4 -328.8 29.5

“Stomana Industry” JSC 384.6 482.6 696.7 514.8 -181.9 73.9

“Promet Steel” JSC 359.7 321.1 462.9 278.3 -184.6 60.1

“Helios Metallurg” Ltd 15.0 48.5 53.2 38.0 -15.2 71.4

Rolled

metal Finished products 1 747.8 1 900.2 1 679.0 968.5 -710.5 57.7

22

A decrease in the production is reported mainly about flat hot-rolled

ferrous metals, where in 2009 it represents 38.2 % compared to that in

2008. In “Kremikovtzi” JSC there is a drop of production more than

three times, and in “Stomana Industry” JSC it is about two times.

In 2009, just as in 2008, the production of long products exceeds that of

flat ones. This is due to the enormous drop of production at

“Kremikovtzi” JSC.

Figure.2.3

0

200

400

600

800

1000

1200

1400

1600

2006 г. 2007 г. 2008 г. 2009 г.

плоски ВЧМ

дълги ВЧМ

1 318,30

429,5

1 395,60

504,6

794,5

884,5

303,3

665,2

Production of flat and long RFM, thousand tons

There is also a drop of 24.8 % in the production of long rolled products

in 2009 compared to the previous year. The biggest decrease is in the

production of “Promet Steel” JSC – 39.9 %. “Stomana Industry” JSC

almost preserves their 2008 production volumes but “Helios

Metalurg”Ltd reports a drop of 29 %.

The relative share of produced flat HRM in the total quantity of HRM

amounts to 68.3 % in 2006, 73.4 % in 2007, 47.4 % in 2008, and 31.3 %

in 2009. and for long HRM for the corresponding years: 31.7%, 26.5 %,

52.6 % and 68.7 %.

In 2009 there is no change in the capacities of processing aggregates

(for flat and long products) in all companies.

23

The Bulgarian hot-rolled metal production in 2008 represents

0.169% of the total world production, whereas in 2009 it is 0.095 %. This

indicator for 2008 represents 1.26 % of the EU (27) production, and in

2009 it is 0.964 %.

Regarding only the HR flat metal the data show that in 2008 and

2009 Bulgaria produced 0,124 % and 0.056% respectively of the total

world production and 0.648 % and 0.532 % of the EU (27) production.

The production of HR long metal in 2008 and 2009 is respectively

0,211 % and 0.140 % of the total world production and 1.453 % and

1.531 % of that production in the EU (27).

The relative share of long products increases, and that of flat rolled metal

goes down.

The production of articles from HRM – total and by producer companies

is shown on Table 2.3 and Figure 2.4.

In 2009 the total production of articles from rolled ferrous metals

reports a decrease by 149.0 thousand tons or 56.8 % compared to 2008.

In 2008 at “Kremikovtzi”JSC basic articles for the company such as

sheet steel with zinc and organic coating and cold-rolled strip were not

produced .

Unlike in 2008 here is a slight increase of the production of steel balls

for mills by 11 % at “Stomana Industry” JSC and a decrease of mine

reinforcement profiles by 32.2 %.

In 2009 a considerable drop in the production of steel pipes is recorded

– by 55.9 % totally. The biggest decrease is at “Inter Trust Holding”

JSC – by 82.9 % compared to 2008.

During the year in reference “Klöckner Metalsnab”JSC sold their

installations for pipe production; therefore the production volume of this

company is low.

Main producer of wire and wire products is “Jiti” JSC – Russe. In 2009

a decrease in their production by 34.9 thousand tons, or more than two

times, is recorded compared to 2008.

24

Table 2.3

Production of rolled ferrous metal (RFM) products

by companies and assortment, thousand tons

Source: Company data

Steel pipes (seamless and welded) produced in Bulgaria in 2009

represent respectively 0,002% and 0.095 % of the total world production

of this product and 0.070% and 0.852 % of the production of the EU (27).

Products Companies: 2006 2007 2008 2009 2009/2008

+/- %

Steel pipes

“Precise Inter Holding”JSC 77.6 85.0 133.0 64.0 -69.0 48.1

“Inter Trust Holding”JSC 2.9 23.3 25.8 4.4 -21.4 17.1

“Klöckner Metalsnab”JSC 4.4 5.4 5.7 0.3 -5.4 5.3

Total 86.2 113.7 164.5 68.7 -95.8 41.8

Incl. welded

“Precise Inter Holding”JSC 77.6 85.0 133.0 64.0 -69.0 48.1

“Inter Trust Holding”JSC 2.9 9.7 10.2 1.3 -8.9 12.7

“Klöckner Metalsnab”JSC 4.4 5.4 5.7 0.3 -5.4 5.3

Total 84.9 100.1 148.9 65.6 -83.3 44.1

Seamless “Inter Trust Holding”JSC 1.3 13.6 15.6 3.1 -12.5 19.9

Total 1.3 13.6 15.6 3.1 -12.5 19.9

Zinc-coated

sheets “Kremikovtzi”JSC

115.0 40.6 1.1

- -1.1 -

Organic

coated coils “Kremikovtzi”JSC

10.2 1.0 -

- - -

CR strip “Kremikovtzi”JSC 1.0 0.2 - - - -

Steel balls

for mills “Stomana Industry ” JSC

22.2 15.2 10.0

11.1 1.1 111.0

Wire and

wire articles “Stomana Industry ” JSC - 3.1 8.5 - -8.5 -

“JITI” JSC 20.3 18.5 47.2 12.3 -34.9 26.0

Total 20.3 21.6 55.7 12.3 -43.4 22.1

Mine

profiles “Stomana Industry ” JSC

30.4

18.7

30.8

21.0

-9.8

68.2

RFM Finished products 301.4 211.0 262.1 113.1 -149.0 43.2

25

Figure.2.4

0

50

100

150

200

250

300

350

2006 г. 2007 г. 2008 г. 2009 г.

Производство на изделия от ВЧМ,хил.т

301,4

211262,1

113,1

HRM products, thousand tons

2.2. TRADE TURNOVER AND CONSUMPTION OF RFM AND

FINISHED PRODUCTS

2.2.1. IMPORT OF SCRAP RFM AND FINISHED PRODUCTS

The total import volume of scrap, rolled ferrous metals and finished

products from them in 2009 amounted to 1 233.1 thousand tons. The decrease

is by of 366.0 thousand tons or by 958.4 thousand tons or 43.7 % compared to

2008.

The import in 2009 calculated in US $ marks a decrease 64.3% or

1 401.0 million dollars (1 817.4 m leva) compared to 2008. The import data

for the last four years are shown on Table 2.4.

Pig iron for foundry needs is imported mainly from Ukraine (91.2 % of

the total imported quantity).

In 2009 compared to 2008 the quantity of imported scrap was reduced

by 37.5 % or by 34.8 thousand tons. The share of imported scrap in the total

import volume remains relatively small - around 16.4 %. The needs of

Bulgarian companies are covered basically by existing scrap or bought from

the country. In 2009, as well as during the last few years, the biggest quantities

are imported from Romania (86.9 % of the total quantity).

26

Table 2.4

Import of scrap, RFM and finished products, thousand tons

Products: 2006 2007 2008 2009 2009/2008

+/- %

Non-alloyed - total 1 644.4 2 084.1 1 855.5 1 032.7 -822.8 55.6

Pig iron, ingots, granules,

powder

17.0 26.2 30.4 15.6 -14.8 51.3

Ferroalloys 15.3 17.0 14.4 9.0 -5.4 62.5

Scrap 183.8 296.6 237.1 202.3 -34.8 85.3

Semi- products 417.2 461.9 567.7 306.0 -261.7 53.9

HR metal (coils & sheets) 269.4 400.5 245.1 132.8 -112.3 54.2

CR metal (coils & sheets) 98.6 99.4 105.2 70.6 -34.6 67.1

Rolled wire 211.2 175.4 222.8 99.5 -123.3 44.6

Bars 340.9 485.5 306.0 144.0 -162.0 47.1

Profiles 91.0 111.6 126.8 52.9 -73.9 41.7

Alloyed - total 62.8 80.9 83.3 31.1 -52.2 37.3

HR and CR coils & sheets 31.8 40.3 46.4 21.0 -25.4 45.2

Bars and profiles 25.3 34.2 32.9 10.1 -22.8 30.7

HR Strips 2.1 2.3 - - - -

Others 3.6 4.1 4.0 - -4.0 -

RFM Products 222.7 392.4 252.7 169.3 -83.4 67.0

Seamless pipes 45.5 43.0 40.0 18.1 -21.9 45.2

Welded pipes 43.8 207.3 48.4 29.1 -19.3 60.1

Coated sheets 104.2 112.4 135.3 97.7 -37.6 72.2

Black strip 6.1 - - - - -

Coated strip 6.8 - - - - -

Wire 16.3 29.7 29.0 24.4 -4.6 84.1

Total 1 929.9 2 557.4 2 191.5 1 233.1 -958.4 56.3

Value in m US $ 1 068.5 1 455.4 2 178.6 777.6 -1 401.0 35.7

Value in m leva 1 666.3 2 066.7 2 906.0 1 088.6 -1 817.4 37.5

Source: Customs statistics

The import of semi-products in 2009 goes down significantly by 261.7

thousand ton compared to the previous year, the deliveries being mainly from

Ukraine.

The share of total import of rolled ferrous metals to Bulgaria in

2008 compared to the total import of these products for the EU (27)

countries is 1.23% and in 2009 – 1.37 %. Compared to worldwide import

of these products in 2008 and 2009 it is respectively 0.342 % and 0.603 %.

In 2009 a decrease in the import of flat RFM from non-alloyed steel is

recorded. This is especially true for hot-rolled metal (coils and sheet). The

decrease is by 112.3 thousand tons or 45.8 % compared to the previous year.

27

As can be seen from table 2.5 and fig. 2.5, in the last few years the

import of flat rolled ferrous metals has gone down more than two times. The

biggest drop is with the import from EU countries (73.6 %).

The import from other countries in Europe, mainly from the Balkans –

Macedonia, Serbia and Turkey, goes down by 146.8 thousand tons or by 69.4

%. The drop in the flat rolled metal imported from Russia is much smaller.

Table 2.5.

Import of flat rolled metals, tons

Regions: 2006 2007 2008 2009 2009/2008

+/- %

European Union (27) 20.8 121.0 125.0 33.0 -92.0 26.4

Other European

countries

84.3 231.4 211.6 64.8 -146.8 30.6

Russia 261.7 151.7 154.7 126.3 -28.4 81.6

North America 1.0 0.3 0.1 - -0.1 -

Others - 42.2 40.6 0.3 -40.3 0.7

Total 367.8 546.6 532.0 224.4 -307.6 42.2

Source: Customs statistics

The share of import of flat rolled metals in Bulgaria in 2008 and

2009 compared to the total volume of import of this product to the

countries of the EU (27) is 0.764 % and 0.536 %, and compared to that of

the world during the same years– 0.189 % and 0.222 %.

The data by countries show that the biggest importer of flat rolled

ferrous metals products to Bulgaria is Ukraine (63.0 %). Another major

importer of such production is Serbia (22.0 %). It should be noted that the

share of import from Macedonia (4.0 %) went significantly down compared to

2008. The biggest importer of flat products from alloyed and stainless steel in

2009 is Russia (47.4 %), whereas in 2008 it was Germany. The import of

alloyed HR and CR coils and sheet in 2009 drops down by 54.8 %. The

quantity in 2009 is 21.0 thousand tons and is much lower than the 2008 level

(46.4 thousand tons).

The total import volume of long products, of regular steel brands as

well as of stainless and alloyed steel brands in 2009 records a considerable

drop of 22.8 thousand tons compared to 2008 (Fig.2.6).

28

Figure.2.5

0

100

200

300

400

500

600

2006г. 2007г. 2008г. 2009г.

Внос на плосковалцуван прокат, хил.т

401,9

546,6532

224,4

Import of flat rolled metal, thousand tons

Figure.2.6

0

100

200

300

400

500

600

700

800

900

2006г. 2007г. 2008г. 2009г.

Внос на дълги продукти, хил.т

457,2

806,7

721,4

306,5

Import of long products, thousand tons

In 2009 there is a change concerning the countries-importers of long

products to Bulgaria. While in 2008 the biggest importer of bars of regular

steel brands is Greece, in 2009 the import is mainly from Romania – 24.7 %

and Turkey – 23.2%. The biggest importer of profiles in 2008 was Ukraine

but in 2009 it was Greece (18.9 %) followed by Korea (12.1 %). A drop in the

import of profiles from Ukraine is recorded compared to the previous two

years – nearly two times. This is due to existing quotas for the European

market for some steel products originating from Ukraine.

29

In 2008 a decrease in the import of rolled wire of regular steel brands is

observed – by 55.4 %. Major importers are: Greece – 42.5 %, Ukraine –

38.6%, and Turkey – 10.1 %.

As to alloyed bars and profiles, no significant changes are recorded,

neither in quantities, nor in directions for import. In 2009 again basic

importers are the Russian Federation – 29.2 % and Ukraine – 25.7 %.

The share of import of long rolled metal to Bulgaria in 2008 and

2009 makes respectively 2.21 % and 1.58 % of the total import of these

products into the EU (27) countries, and 0.58 % and 0.81 % of world

import figures.

During the year in reference the import of coated sheet (galvanized,

plastic-coated, tin coated sheet) goes down by 37.6 thousand tons. The main

importers in 2009 are again Turkey and China.

The import of seamless pipes from carbon steel marks a considerable

drop in 2009. This is due to a decrease of construction and other investment

projects in the country.

In 2009 the direction for import of seamless pipes from carbon steel

remain the same as in the previous years. They are Ukraine – 25.6 %, China –

23.2 and Germany – 6.3 %. As to welded pipes the highest import is from

China – 43.8 %.

The import of metal products (Fig. 2.7) has gone down by 83.4 thousand

tons or 33 % in 2009 compared to 2008.

Figure.2.7

0

50

100

150

200

250

300

350

400

450

2006г. 2007г. 2008г. 2009г.

Внос на метални изделия,хил.т

222,7

392,4

252,7

169,3

Import of metal products, thousand tons

30

2.2.2. EXPORT OF SCRAP, RFM AND FINISHED PRODUCTS

Information about the quantities of scrap, ferrous metals and finished

products exported during the last four years is presented on Table 2.6.

Compared to 2008, in 2009 the total volume of export goes down in

quantity by 26.9 % .

In terms of value the export in 2009 scores a significant decrease of 56%

or by 857.1 million dollars, respectively 1 098.8 million leva compared to

2008.

Characteristic for the year in reference is that the trend from the last

years for growth in the export of rods (11.8 %) is maintained. The export of

hot rolled coils and sheet goes down sharply (50.8 %). About the steel

products the export volume also decreases by 33.3 % compared to 2008.

The share of export of rolled ferrous metals from Bulgaria in total

for 2008 and 2009 in the total export of the EU countries (27) is 0,89%

and 1.21% respectively, and in the world total – 0.192 % and 0.449 %.

In 2009 the export of scrap goes down significantly by 229.4 thousand

tons or 31.0 % compared to the previous year.

Different types of ferroalloys are exported to Turkey (68.2 %) and Italy

(10.1 %).

The trend of a relatively small export of semi-products (blanks)

continues, and it goes down by 42.7 % compared to 2008. In 2009 the share of

export directed to neighbour countries – Greece (71.3.8 %) and Turkey

(26.3%) – went up. In 2009 again nearly the whole quantity of blanks exported

to Greece was produced at „Stomana Industry” JSC.

In 2009 the total volume of flat products (table 2.7, fig. 2.8) is directed

mainly to EU countries – Romania (24.3 %), Austria (11.5 %). It must be

noted that the share of export to other Eastern European countries went down

as well. The is barely any export of flat cold-rolled products due to the

suspended production at “Kremikovtzi” JSC.

31

Table 2.6

Export of scrap, RFM and finished products, thousand tons

Стоки:

2006

2007

2008

2009

2009/2008

+/- %

Non-alloyed total 2 387.5 2 498.6 1 931.7 1 423.0 -508.7 73.7

Pig iron 44.6 66.7 32.2 1.4 -30.8 4.3

Ferroalloys 7.2 13.6 2.9 12.8 9.9 441.4

Scrap 724.8 676.1 740.4 511.0 -229.4 69.0

Semi-products 163.5 135.7 85.4 48.9 -36.5 57.3

HR coils & sheets 1 066.2 1 281.9 549.2 270.0 -279.2 49.2

CR coils & sheets 90.3 38.1 8.3 5.6 -2.7 67.5

Rolled wire 0.0 6.1 20.1 19.8 -0.3 98.5

Bars 232.3 237.2 437.8 489.7 51.9 111.8

Profiles 58.6 43.2 55.4 63.8 8.4 115.2

Total Alloyed 1.4 0.1 3.6 1.4 -2.2 38.9

Bars & Profiles 0.5 0.1 0.7 1.4 0.7 2.0

Others 0.9 - 2.9 - -2.9 -

RFM products 231.4 147.5 136.3 90.9 -45.4 66.7

Seamless pipes 2.0 10.2 11.0 5.2 -5.8 47.3

Welded pipes 92.4 97.5 108.7 79.0 -29.7 72.7

Coated sheet 122.3 33.5 8.9 5.8 -3.1 65.2

Black strip 3.2 - - - - -

Coated strip 0.1 - - - - -

Wire 11.4 6.3 7.7 0.9 -6.8 11.7

Total 2 620.3 2 646.2 2 071.6 1 515.3 -556.3 73.1

Value, m US$ 1 154.2 1 541.7 1 530.3 673.2 - 857.1 44.0

Value, m leva 1 799.9 2 189.2 2 041.3 942.5 -1 098.8 46.2

Source : Customs stastistics.

Table 2.7

Export of flat rolled metal, thousand tons

Regions: 2006 2007 2008 2009 2009/2008

+/- %

European Union (27) 662.7 662.8 402.8 200.9 -201.9 49.9

Other European

countriess

445.8 562.5 140.0 73.7 66.3 52.6

C.I.S. 0.1 0.6 0.1 0.3 0.2 3.0

America 42.9 2.9 3.0 0 -3.0 -

Asia 3.1 8.7 6.3 0.1 -6.2 1.59

Others 1.9 82.5 - 0.6 0.6 -

Total 1 156.5 1 320.0 552.3 275.6 -276.7 49.9

Source : Customs stastistics

32

Figure.2.8

0

200

400

600

800

1000

1200

1400

2006г. 2007г. 2008г. 2009г.

Износ на плосък прокат, хил.т

1156,5 1320

552,3

275,6

Export of flat rolled metal, thousand tons

The share of Bulgarian export of flat cold-rolled products in 2008

and 2009 is 0.849 % and 0.626 % respectively in the total export of the ЕU

(27) countries and in world export – 0.195 % and 0.222 %. This shows that

a small part of the European export of metal products comes from Bulgaria but

compared to the world export of these products it is above the average level.

The total export volume of long products in 2009 (Fig.2.9) compared to

2008 rose by 53.0 thousand tons or 10.1 %. This is due to the less

consumption of these products in the country.

The direction for export in 2009 remain the same as in the last few

years. For long products the biggest export is that of bars to Romania (30.7%).

The export to Lebanon, Ghana, Yemen, Egypt and other African countries is

on the increase which shows that the Bulgarian companies are looking for new

markets for their production.

The export of profiles is directed to the EU countries, primarily to

Greece (32.7 %), Spain (25.1 %), and Romania (13.3 %).

Bulgaria’s share in 2008 and 2009 in the total volume of export of

long RM products to the EU (27) countries amounts to 1.42 % and 2.21 %

respectively, and in world export – to 0.313 % and 0.879%.

33

Figure 2.9

0

100

200

300

400

500

600

700

2006г. 2007г. 2008г. 2009г.

Износ на дълги продукти, хил.т

291,4 280,5

521,7574,7

Export of long products, thousand tons

The total export volume of steel products (Fig. 2.10 in 2008 marks a

drop of 45.4 thousand tons compared to 2008. This is due to the reduced

output of welded and seamless pipes in our factories.

Figure.2.10

0

50

100

150

200

250

2006г. 2007г. 2008г. 2009г.

Износ на метални изделия, хил.т

231,4

147,5120,9

90,9

Export of metal products, thousand tons

Export of welded pipes decreases by 27.3 %, and that of seamless pipes

– by 52.7 %.

The direction of the export of welded pipes follows that of the previous

years – mainly to Germany (50.9 %) and Romania (19.4 %).

Seamless pipes are exported mainly to Italy (50.9 %).

34

The export of coated sheet in 2009 marks a drop of 34.8 % compared to

2008.

Again no strip was exported in 2009 (for a third year in a row).

The negative trend for considerably decreased export of wire products

is preserved in 2009. Compared to the previous year it is 88.3 % down.

The data about the export of scrap are shown on Table 2.8 and Figure

2.11.

Table 2.8

Export of scrap, thousand tons

Regions: 2006 2007 2008 2009 2009/2008

+/- %

European Union (27) 275.5 445.4 150.5 137.5 -13.0 91.4

Other European countries 443.4 222.7 578.8 367.4 -211.4 211.4

Asia 5.9 7.7 9.1 6.0 -3.1 65.9

Other countriess - 0.3 2.0 0.1 -1.9 5.5

Total 724.8 676.1 740.4 511.0 229.4 69.0

Source : Customs stastistics

The analysis reveals that the export of scrap from the country decreased

in 2009 compared to 2008 by 229.4 or 31.0 % compared to 2008, which can be

explained with the reduced demand and lower prices of scrap. During the year

in reference the export to EU and other European countries went down. The

biggest share of export goes to Turkey again – 46.3 % of the total volume,

Greece – 24.6 % and Macedonia – 24.0%. For EU countries the highest price

of scrap (mainly alloyed) is of that exported to Great Britain and Germany,

and the lowest it is for Italy. The price of scrap exported to other European

countries is comparatively low. Figure.2.11

0

100

200

300

400

500

600

700

800

2006г. 2007г. 2008г. 2009г.

Износ на скрап,хил.т

724,8 676,1 740,4

511

Export of scrap, thousand tons

35

Comparative data about the import and export of flat and long products

and metal products are shown on figures 2.12, 2.13 and 2.14.

Figure.2.12

0

200

400

600

800

1000

1200

1400

2006г. 2007г. 2008г. 2009г.

внос,х.т

износ,х.т

401,9

1 156,50

546,6

1 320,00

532569,3

224,4

275,6

Import and export of flat metal, thousand tons

The data on the figure show a gradual increase in the total import and

export volumes of flat metal for the period 2006-2008, the export exceeding

the import more than twice. In 2008, because of the big decrease in the

production of flat metal at “Kremikovtzi” JSC, the main producer of these

products, the proportion changed and a drop in the export by 750.7 thousand

tons in comparison to 2007 is observed. Characteristic for 2009 is a

considerable decrease both of import and export (around two times).

While in 2008 an insignificant drop of import is observed - around

11.6% compared to the previous year, in 2009 this drop is too big – 42.2 %

compared to 2008.

The export of long rolled products in 2009 keeps its trend from the last

years and marks an increase of 10.2 % compared to 2008.

During the last 4 years (2006-2009) the export of long products exceeds

their import and in quantitative aspect it is twice higher than the import.

36

Figure.2.13

0

100

200

300

400

500

600

700

800

900

2006г. 2007г. 2008г. 2009г.

внос,х.т

износ,х.т

457,2

291,4

806,7

280,5

721,4

521,7

306,5

574,7

Import and export of long rolled metal, thousand tons

Figure.2.14

0

50

100

150

200

250

300

350

400

450

2006г. 2007г. 2008г. 2009г.

внос,х.т

износ,х.т

222,7

231,4

392,4

147,5

88,4119,7

169,3

90,9

Import and export of metal products, thousand tons

While in 2008 a sharp decrease of import of metal products was

observed – more than four times compared to 2007, in 2009 this index marks

an increase of 91 %.

A gradual decrease in the volumes of export is observed and during the

year in reference it is the smallest.

37

Table 2.9

Foreign trade balance of some types of products in 2009

Source : Customs stastistics

The data forming the general foreign trade balance of the basic types of

RM products in 2009 show that, unlike in 2008, the export exceeds the import

in quantitative aspect (Table 2.9). For the different kinds of products this

balance is also different – the export of flat metal products and long finished

products the export exceeds the import. The situation with the scrap is the

same. The import of semi-products and finished products significantly exceeds

their export. Concerning these products our country is still a net importer.

Unlike the previous year, 2008, the trade balance is positive. Despite the

reduced quantities of finished metal products, the total export volume exceeds

the import. It must be noted that the export also went down compared to 2008,

but for import this drop is much more significant. This is due to the

considerable decrease in home consumption in particular sectors of the

country’s economy such as construction, machine building and others.

In terms of value, though, the import exceeds the export which comes to

show that Bulgarian companies export metal production with lower value

added at lower prices, and they import such with higher value added at higher

prices. This results in a negative trade balance in terms of value.

Type of Products:

Export Import Difference

Th. t. Th. t. Th. t.

Semi-products 48.9 306.0 -257.1

Flat RFT 275.6 224.4 51.2

Long RFT 574.7 306.5 268.2

Products 90.9 169.3 -78.4

Scrap 511.0 202.3 308.7

Total 1 501.1 1 208.5 292.6

38

2.2.3.FOREIGN TRADE TURNOVER OF ROLLED FERROUS

METALS AND FINISHED PRODUCTS

Comparative data about the foreign trade turnover of rolled ferrous metals and

products of ferrous metallurgy in the last four years in terms of quantity are shown in

Table 2.10.

Table 2.10

Foreign trade turnover of rolled ferrous metals and finished products,

thousand tons

RFM and products 2006 2007 2008 2009

2009/2008

+/- %

Rolled ferrous metals:

- import (incl. semis and

alloyed) 1 491.1 1 815.2 1 821.1 836.9 -984.2 45.9

- export (incl. semis and

alloyed) 1 612.3 1 736.2 1 176.4 899.2 -277.2 76.4

Total turnover 3 103.4 3 551.4 2 997.5 1 736.1 -1 261.4 57.9

Balance (export-import) +121.2 -79.0 -644.7 62.3 -582.4 9.7

RFM products:

- import 222.7 392.4 252.7 169.3 -83.4 67.0

- export 231.4 147.5 136.3 90.9 -45.4 66.7

Total turnover 454.1 539.9 389.0 260.2 -128.8 66.9

Balance (export-import) +8.7 -244.9 -116.4 -78.4 -194.8 67.4

Source : Customs stastistics

The group of RFM includes the semi-products, HR and CR steel (coils,

sheet and strip), rolled wire, rods and profiles (including alloyed rolled steel)

and products, but excluding pig iron, ferroalloys and scrap.

The analysis of the data shows that the exported quantity of RFM incl.

semi-products in 2009 decreased compared to 2008 by 277.2 thousand tons

(23.6 %) and the import by 984.2 thousand tons. The total turnover goes down

by 1 736.1 thousand tons or by 42.1%. The total trade balance is positive, i.e.

the export exceeds the import.

For RFM products the volume of export goes down by 45.4 thousand

tons or by 33.3 %, and import decreases by 83.4 thousand tons or by 33.0 %.

In 2009 compared to 2008 a decrease in the foreign turnover of 128.8 thousand

tons or 33.1 % is recorded. The trade balance in 2009 is negative.

39

2.2.4.SALES OF RFM AND FINISHED PRODUCTS ON THE

HOME MARKET

The consumption of steel products on the home market by types and the

distribution by producing companies in 2009 are shown on tables 2.11 and

2.12.

In 2009 a decrease in the quantities of metal products sold on the home

market by 221.5 thousand tons compared to 2008 is observed. This is due to

the economic crisis and the reduced total home consumption. Less

consumption on the home market is observed both for long rolled product, and

flat products. The re is a considerable decrease in metal products as well.

The production of the metal industry is completely sold. There is no

increase of the stocks in the companies.

Table 2.11

Sale of ferrous metal products in 2008 and 2009by types, thousand tons

Metal products: Export Home market Total sale

2008 2009 2008 2009 2008 2009

Semi- products 85.4 48.9 16.8 4.0 102.2 52.9

Long products 521.7 574.7 374.4 362.0 896.1 936.7

Flat products 569.3 275.6 260.6 128.2 829.9 403.8

Incl. HR 569.3 270.0 260.6 128.2 829.9 398.2

CR - 5.6 - - - 5.6

Total rolled metal 1 176.4 850.3 651.8 490.2 1 828.2 1 389.4

Products 119.7 90.9 101.6 37.7 221.3 128.6

Total 1 296.1 990.1 753.4 531.9 2 049.5 1 522.0

Source : Company data

While in 2008 63.2% of the production was sold on the foreign and

36.8% on the home market, in 2009 these figures are 65.0 % on the foreign

and 35 % on the home market respectively. During the year in reference all

Bulgarian companies record a drop in their production sales on the local

market, unlike the previous year. The biggest decrease in sales is in the

companies manufacturing metal products.

Table 2.12.

Consumption of metallurgic and finished products in 2008 and 2009 on the home market by assortment and companies,

thousand tons

Compa-

nies and

types of

products:

“K

rem

ikovtz

i” J

SC

“S

tom

an

a In

du

stry

”

JS

C

“P

rom

et S

teel

” J

SC

„H

elio

s M

etalu

rg” J

SC

“Jit

i ”

JS

C

„In

terp

ipe”

JS

C

„K

löck

ner

Met

als

nab

”

JS

C

“P

reci

se In

ter

Hold

ing” J

SC

Tota

l

2008 2009 2008 2009 2008 2009 2008 2009 2008 2009 2008 2009 2008 2009 2008 2009 2008 2009

Semi-

products - - 16.8 4.0 - - - - - - - - - - - - 16.8 4.0

Rolled long

metal - - 137.9 157.2 201.3 171.0 35.2 33.8 - - - - - - - - 374.4 362.0

Rolled flat

metal 211.0 107.4 49.6 20.8 - - - - - - - - - - - - 260.6 128.2

Incl. HR 211.0 107.4 49.6 20.8 - - - - - - - - - - - - 260.6 128.2

CR - - - - - - - - - - - - - - - - - -

Total

Rolled

Metal 211.0 107.4 221.1 182.0 201.3 171.0 35.2 33.8 - -

- - - - - - 635.0 494.2

Products - - 23.6 16.9 - - 9.6 4.3 18.7 3.4 2.7 1.1 47.0 12.0 101.6 37.7

Total 211.0 107.4 261.5 198.9 201.3 171.0 35.2 33.8 9.6 4.3 18.7 3.4 2.7 1.1 47.0 12.0 753.4 531.9

2.2.5. REAL HOME CONSUMPTION OF STEEL PRODUCTS

The real home consumption of steel products (RFM and related

products) is formed from the sales of the companies on the home market and

from the import. The data for 2007 and 2008 are presented on Table 2.13 and

Figure 2.16. Table 2.13

Real home consumption of steel products on the home market, thousand tons

Products:

2008 2009 2009/2008

Home

consum. Import Total

Home

consum. Import Total +/- %

Semis 16.8 567.7 584.5 4.0 306.0 310.0 -274.5 53.0

Long RFM* 374.4 721.4 1 095.8 362.0 306.5 668.5 -427.3 61.0

Flat RFM * 260.6 532.0 792.6 128.2 224.4 352.6 -440.0 44.5

Incl. HR 260.6 532.0 792.6 128.2 142.8 271.0 -521.6 34.2

СR - - - - 81.6 81.6 81.6 0

Total RFM 651.8 1 821.1 2 472.9 494.2 836.9 1 331.1 -1 141.8 53.8

Products of

RFM 101.6 88.4 190.0 37.7 169.3 207.0 17 108.9

Total 753.4 1 909.5 2 662.9 531.9 1 006.2 1 538.1 -1 124.8 57.8

Source: Customs data (import) and company data

(marketing on the home market).

* including alloyed from import

Figure.2.16

0

500

1000

1500

2000

2500

3000

вътрешно внос общо

2007г.

2008г.

2009г.

434,1753,4 531,9

2 207,60

1 909,50

1 006,20

2 641,702 662,90

1 538,10

Real home consumption in 2007,2008 and 2009, thousand tons

42

The analysis of the data from Table 2.13 indicates the following:

In 2008 the real home consumption of steel products is at almost the

same level compared to 2007 and the increase is only by 21.2 thousand tons or

0.8%. For RFM the increase is 13.5%, but a considerable drop of 59.1 % is

observed in finished products.

In 2009 the real home consumption of these products goes down

significantly by 1 124.8 thousand tons or 42.2 % compared to 2008. This

results in a drop both in home sales of production and in import.

In 2008 the relative share of home production sales in the total

consumption is 28.3 %, and of import – 71.7 %, whereas in 2009 these

figures are 34.6% and for import – 65.4 % respectively.

The consumption of steel products is also expressed by means of the so-

called visible consumption calculated by the formula:

VC = (M + I) – E, where

VC – visible consumption (in thousand tons)

VpCC – visible per capita consumption, (kg)

M – manufactured steel products (in thousand tons)

I – imported steel products (in thousand tons)

E – exported steel products (in thousand tons)

(excluding pig iron, ferroalloys and scrap)

The visible consumption of steel products (RFM + products) is

presented by the figures on Table 2.14. Table 2.14

Visible consumption of steel products, thousand tons

Years M I E VC VpCC

2004 2 053.1 2 053.1 1 802.6 1 356.2 174.7

2005 1 870.7 1 870.7 1 633.5 1 577.6 204.4

2006 2 215.9 1 713.8 1 843.7 2 086.0 272.0

2007 2 254.9 2 207.6 1 883.7 2 578.8 337.5

2008 1 957.9 1 909.5 1 296.1 2 571.3 338.0

2009 1 114.7 1 006.2 990.1 1 130.8 149.5

Incl: Semi-

products 33.4 306.0 48.9 290.5 38.4

HR long 665.2 306.5 574.7 397.0 52.4

HR flat 303.0 224.4 275.6 251.8 33.2

Products 113.1 169.3 90.9 191.5 25.3

Sources : Company data (for production) and customs data (for import and export)

The analysis of the figures in Table 2.14 reveals a decrease in the visible

consumption in 2009 compared to 2008 by 1440.5 thousand tons or 56.0 % .

The visible consumption per capita in 2009 records a drop of 55.8 % compared

43

to the previous year. For the different products it is much lower than in 2008,

and for long products the decrease is two times bigger. This can be explained

with the suspended construction projects in the country, where long rolled

metal is most used.

In 2009 the difference between the visible and the real (1 538.1thousand

tons) consumption is 407.3 thousand tons.

The real and visible consumption per capita in Bulgaria compared

to these figures for the European Union (real – 286.4 kg/person and

visible – 254.6 kg/person) is 71.0 % and 58.7 % respectively from the EU

figures.

The conclusion is that during the year in reference Bulgarian industry

reduced the visible consumption of steel products compared to the previous

year. This is the reason for less production and lower export and import

volumes.

2.3. PRODUCTION AND CONSUMPTION OF REFRACTORY AND

OTHER MATERIALS

The production of refractory materials and products is connected

inseparably to the sector “Metallurgy and casting of metals”. It provides the

necessary products for the furnaces and heating furnaces in the plants

producing ferrous and non-ferrous metals. The basic producing companies,

members of the Association are “Shamot EL PE” JSC – Gara Elin Pelin,

“Trud” JSC – Russe, “Rimpex” JSC – Sofia and “Refran” PLC.

The data about the output and sales of these companies are presented on

Table 2.15 and Fig. 2.17

The analysis of the data shows that in 2009 despite the economic crisis a

slight increase of the total refractory production volume by 259 tons or 1.8 %

compared to 2008. It must be noted that “Shamot EL PE” JSC – Gara Elin

Pelin restored the production of “Shamot” JSC and reports 237 tons of

production. An increase of refractory production is also observed in “Refran”

PLC by 116 tons or 7.2 % compared to the previous year and in “Rimpex” JSC

- by 250 tons or 38.5 %. “Trud” JSC reports a significant decrease of 2 474

tons or 20.6 %.

The home consumption of refractories in 2009 goes down by 6 413 tons

compared to the previous year, which is explained mainly with the suspended

aggregates for production of pig iron and steel at “Kremikovtzi” JSC, the

company which is the biggest consumer of refractory materials in the country.

Another reason is the reduction of production in some other companies,

consumers of these products.

44

Production and consumption of refractory material Table 2.15

Production type: 2006 2007 2008 2009 2009/2008

+/- %

Произведена продукция 32 320 22 264 14 295 14 554 259 101.8

Production output 32 320 22 263 14 290 14 551 261 101.8

Refractory materials, T. 15 683 7 988 - 237 237 100.0

-by “Shamot” JSC 14 618 12 095 12 026 9 552 - 2 474 79.4

- by „Trud” JSC 1 260 910 650 900 250 138.5

- by “Rimpex” JSC 759 1 270 1 614 1 730 116 107.2

- by „Refran” PLC - 1 5 3 -2 6.0

Ceramic tiles thousand m2 4 905 2 176 2 439 10 621 8 182 435.5

Export 4 905 2 176 2 439 10 621 8 182 435.5

Refractory materials, tons - - - - - -

Ceramic tiles thousand m2 25 962 19 438 9 854 3 441 -6 413 34.9

Home consumption, tons 25 962 19 437 9 849 3 438 -6 411 34.9

Refractory materials, tons - 1 5 3 -2 58.0

Source : Company data

Figure 2.17

Production of refractories, tons

The export in 2009 marks a considerable increase – more than four

times compared to the previous year and this is the highest export volume in

the last three-four years. This means that Bulgarian refractories find wider

markets in the Balkan countries.

Ognjanovo –K” JSC with their two plants and three quarries is the

biggest producer of lime, lime products and crushed limestone in the country

that find a wide application in metallurgy.

0

5 000

10 000

15 000

20 000

25 000

30 000

35 000

2006г. 2007г. 2008г. 2009г.

Производство на огнеупори, т

32500

22264

14295 14554

45

Data about the production, its marketing in the country and export are

shown on Table. 2.16. They indicate that the lime production during the last

three years keeps almost a constant level with an insignificant drop of 6 % in

2009 compared to 2008. The production of lime fractions decreases by

401thousand tons or 31.4 %.

Table 2.16

Production and sale of production in 2006, 2007, 2008 and 2009, thousand tons

Production 2006 2007 2008 2009

Lime production 116.6 115.3 114.1 107.3

Marketing, incl. 116.6 115.3 114.1 107.3

- for home consumption 101.4 98.1 97.3 91.6

- for export 15.2 17.2 16.8 15.7

incl. to the EU 8.3 8.7 8.6 6.2

Production of limestone fractions 892 1 090 1 276 875

Marketing, incl.

- for home consumption 892 1 090 1 376 875

- for export 0 0 0 0

incl. to the EU 0 0 0 0

Nearly the whole produced quantity of lime and limestone fractions are

sold on the home market, аnd the export is 14.6 %. Almost half of the export is

directed to EU countries.

The whole quantity of lime fractions is sold in the country.

46

SECTION THREE

NON-FERROUS METALLURGY IN BULGARIA

3.1. PRODUCTION OF NON-FERROUS METALS

3.1.1. PRODUCTION OF ANODIC AND ELECTROLYTIC

COPPER

Anodic and electrolytic copper is produced by “Aurubis Bulgaria” JSC.

The technological scheme includes flash smelting of dried batch, converter

processing of the obtained copper stone to blister, fire and electrolytic refining

into cathode (electrolytic) copper with 99.95-99.99% purity. In parallel,

sulphuric acid and intermediate products containing precious metals are

produced. The metallurgical slag is enriched by floatation to copper

concentrate containing 20 – 30 % copper.

The quantity of copper produced during the last four years is shown on

Table 3.1 and Fig. 3.1

Table 3.1

Production of anodic and electrolytic copper, tons

Product 2006 2007 2008 2009

Difference

2009/2008

+/- %

Anodic copper 246 248 242 639 281 199 300 790 19 591 107.0

Electrolytic copper 65 484 69 634 126 853 197 234 70 381 155.5

Source : Company data

The production volume of anodic copper in 2009 is 300 790 tons. It

increases by 7.0 % compared to the 2008 production and by 24.0 % compared

to 2007.

Due to the new refinery shop for electrolytic copper which was put into

regular operation at “Aurubis Bulgaria” the production of electrolytic copper

(cathodes) continues to go up – 55.5 % more compared to 2008, and almost

three times more compared to 2007. Electrolytic copper represents 65.6 % of

anodic copper (45.1 % in 2008, 28.7 % in 2007). The production of sulphuric

acid in 2009 amounts to 1 012 640 tons (8.8 % more than in 2008).

47

Figure 3.1

Производство на анодна и електролитна мед, тона

246248281199

300790

242639

65484 69634

126853

197234

0

50000

100000

150000

200000

250000

300000

350000

2006 г. 2007 г. 2008 г. 2009 г.анодна мед електрол.мед

Production of anodic and electrolytic copper, tons

Electrolytic copper produced in Bulgaria in 2009 makes up 1.07 %

of world production (0. 687 % % in 2008) and 7.85 % of EU (27) production

(4.94 % in 2008).

The total quantity of copper in our country calculated on the basis of

quantity of produced anodes in 2009 makes 1.64 %of world production and

11.98 % of that of the EU. For 2008 the data are 1.52 % and 11.0 %.

Data about the processed concentrates and scrap in the production of

anodic and electrolytic copper during the period 2006 – 2009 are presented on

Table 3.2. Table 3.2

Processed concentrate and foreign scrap for the production of anodic

and electrolytic copper, tons

Продукт 2006 2007 2008 2009

Разлика

2009/2008

+/- %

Processed concentrate. 789 351 789 421 937 267 991 677 54 410 105.8

- copper content, % 28.41 27.01 27.58 25.68 - 1.9 -

- metal content. 224 252 213 248 258 468 254 662 - 3 806 98.5

incl.: from imported concentrate 145 222 143 208 180 822 172 433 - 8389 95.4

from local concentrate 79 030 70 040 77 646 82 229 4 583 105.9

Processed foreign scrap 25 265 19 835 17 062 25 091 8 029 147.1

Source : Company data

The 991 677 tons of processed copper concentrates contain a total of

254 662 tons of copper. 172 433 tons (67.7 %) of them were obtained from

imported concentrates and 82 229 tons (32.3 %) from locally produced

concentrates. In 2009 the processed concentrates exceeded the quantity in

2008 by 54 410 tons (5.8 %). The quantity of the used foreign scrap was by

8 029 tons higher.

48

In 2009 the realization of project for increasing the capacity of the

concentration factory was started. A project for capturing and treatment of

disordered gases is being worked on as well.

The total investments in 2009 amount to 18.8 million leva.

3.1.2. RAW MATERIALS BASE AND PRODUCTION OF LEAD

The data about lead production during the last four years are

presented on Table 3.3 and Fig. 3.2. Table 3.3

Production of lead, tons

.

Product 2006 2007 2008 2009

Difference

2009/2008

+/- %

Lead - total 76 028 86 975 88 446 83 104 - 5 342 94.0

- incl. by“KCM” JSC 64 691 61 201 65 000 61 768 - 3 232 95.0

by“OCK” JSC 11 337 25 774 23 446 21 336 - 2 110 91.0

Source: Company data

Lead production in 2009 goes down by 6.0 %. The share of “KCM”JSC

in the total production is 74.3 %, and that of “OCK”JSC – 25.7 % (73.5/26.5

% in 2008). This ratio is predestined by the existing capacities.

Fig. 3.2

Производство на олово-общо, тона

76028

86975 88446

83104

65000

70000

75000

80000

85000

90000

2006 г. 2007 г. 2008 г. 2009 г.

Lead production - total, tons

Lead produced in Bulgaria in 2009 makes up 0.953 % of world

production and 5.45 % от the EU (27) production. In 2008 these indices are

1.020 % and 5.34 % respectively. The share of the Bulgarian production marks

an insignificant decrease in the total world production but increases regarding

that of the EU.

49

Data on the processed concentrates and foreign scrap for the production

of lead are presented on Table 3.4.

Table 3.4

Processed concentrate and foreign scrap for the production of lead, tons

.

Product 2006 2007 2008 2009

Difference

2009/2008

+/- %

Metal in concentrates, t 64 384 77 045 80 285 72 069 - 8216 89.8

Incl. In imported 45 444 47 685 67 141 59 366 - 7 775 88.4

In local 18 940 29 360 13 144 12 703 - 441 96.6

Processed foreign scrap, t 13 968 13 919 10 744 13 993 3 249 130.2

Source: Company data

The ratio of lead in import concentrates / lead in local concentrates has

changed from 83.6/16.4 in 2008 to 82.4/17.6 in 2009. The increased share of

local concentrates, despite the reduced processed quantities, is due to bigger

drop in import and reduction of the total production. The share of secondary

raw materials in the total raw material resource (concentrates and scrap) goes

up from 11.8 % in 2008 to 16.3 % in 2009, and the quantity of processed scrap

is by 3 249 tons more (30.2 %).

Waste batteries have a basic share in the lead scrap.

3.1.3. RAW MATERIALS BASE AND PRODUCTION OF ZINC

The data about the processed raw materials and the zinc production are

shown on Table 3.5 and Fig.3.4. Table 3.5

Production of zinc, tons

.

Product 2006 2007 2008 2009

Difference

2009/2008

+/- %

Zinc ingots - total 95 341 99 992 101 699 92 676 -9 023 91.1

Incl. at “KCM”JSC 69 777 73 153 75 641 68 478 -7 163 90.5

- at “OCK”JSC 25 564 26 839 26 058 24 198 - 1 860 92.9

Source : Company data

The total zinc production is by 8.9 % lower compared to 2008, and both

at “”KCMJSC and “OCK”JSC there is a decrease in production.

50

Fig. 3.4

95341

99992101699

92676

88000

90000

92000

94000

96000

98000

100000

102000

104000

2006 г. 2007 г. 2008 г. 2009 г.

Производство на цинк, тона

Zinc production, tons

Zinc produced in Bulgaria makes up 0.821 % of world production in 2009

and 5.03 % of that in the EU (27) countries. The corresponding figures for

2008 read 0.872 % and 4.61 %. In 2008 the Bulgarian production of zinc

reduces its share in world production but goes up compared to EU production.

The above data show that despite the slight decrease in production

in 2009 Bulgaria remains a considerable producer of lead and zinc in the

EU. The country takes a good place on the European and world map of

producers of the basic non-ferrous metals – copper, zinc and lead.

The data about the processed concentrate and scrap for the production of

zinc are shown on Table 3.6. Table 3.6

Processed concentrate and foreign scrap for the production of zinc, tons

.

Product 2006 2007 2008 2009

Difference

2009/2008

+/- %

Metal in concentrates, 93 313 95 079 98 332 86 735 -11 597 88.2

- incl. in imported: 79 876 83 212 88 126 77 936 -10 190 88.4

- in local: 13 437 11 867 10 206 8 799 -1 407 86.2

Processed foreign scrap 6 436 8236 5 728 7 620 1 892 133.0

Source : Company information

The relation zinc in imported / zinc in local concentrates remains the

same and is 89.9/10.1 % (89.6/10.4 in 2008).

The quantity of processed scrap goes up by 33 % and it makes up 8.1 %

in the total batch, being 5.5 % in the previous year.

51

At “KCM” JSC the work on the project “Technological renewal and

enlargement of the production” continues. Despite the economic and

financial crisis, which led to a reduced production, the investment process was

not ceased.

It is anticipated that with the modernization of zinc and lead production

the energy consumption will be reduced and thus improve the profitableness of

production and cut the maintenance costs. A significant ecological effect, like

reduction of CO2 emissions per ton of production is also expected; healthier

and safer working conditions, etc. The total value of the project is 94 million

euros.

The investments in 2009 are for 21 million leva.

At “OCK” JSC actions towards a speeded fulfillment of the project

“Modernization and enlargement of the zinc plant” were taken. This

became possible after a Decision of the Ministry of Environment and water

approving the investment proposal. The EIA procedure was blocked by the

previous Management of the same Ministry.

The investments for the new Zinc Plant are for over 85 million euros, 36

million of which are already realized. Main partners in the project are the

Spanish company Asturiana de Zinc concerning the know-how, basic and

detailed engineering, and for delivery of basic equipment for electrolytic

department Outotec GmbH fulfils contracts for pre-basic, basic engineering,

detailed engineering and delivery of basic equipment for a new roaster

department and a new line for sulphuric acid. The basic equipment has been

bought and delivered. The new electrolytic department is expected to start

work in 18 months. The building of a new terminal for sulphuric acid has been

started. With the complete realization of the project the production capacity

will increase by 40 %, and the quality of zinc will be enhanced as well,

guaranteeing the production of zinc with 99,995 purity. .

The work on the project “Modernization of Lead plant”, which was

started in 2007 continues. The report for environmental impact assessment has

been sent to the Ministry of Environment and Water.

The realization of both projects guarantees achieving of all requirements

for working conditions and environment, and the dust, heavy metals and

sulphur dioxide emissions will go down below the allowed norms.

For maintenance of the existing equipment and ensuring of

technological and environmental requirements in 2009 repairs for 603 603 leva

were made; the long-term assets acquired worth 567 867 leva and the

investments for 12 052 243 leva were carried out.

The production of all basic non-ferrous metals constantly increases in

the last few years. The production of copper has the highest growth. For about

10 years, the producer company, “Aurubis Bulgaria” JSC, invested quite a lot

52

both in existing, and in construction of new capacities. The basic technological

and environmental problems have been solved following the best European

and world practice.

Basic improvements have been brought about in the production

schemes, respectively in the environmental and technologic parameters in the

production of zinc. Still both zinc producing companies – “KCM” JSC and

“OCK” JSC continue to work on new projects and to invest in technology and

environmental protection.

The reconstruction of production capacities in the production of lead is

planned to take place in the next few years. Nowadays in their utilization there

are some quantitative restrictions of environmental character. At the present

stage the modernization of lead production according to the best available

technology and environmental standards has been singled out as a priority task

at both producer companies.

3.1.4 PRODUCTION OF SECONDARY, PRECIOUS METALS

AND BYPRODUCTS, ALLOYS AND CHEMICAL PRODUCTS

Data about the production of secondary, precious metals and

byproducts, alloys and chemical products are shown on Table 3.7.

The table shows that in 2009 no bismuth was produced. The amount of

the produced tellurium increases sharply (more than 10 times).A decrease in

the production of sodium bisulphate (by58.2 %) and bismuth lead (by 6.0 %)

is observed.

The production of zinc sulphate at “KCM” JSC is reduced (by 4.4 %),

and the monohydrate is 93.6 % from the total quantity (86.8 % in 2008).

The production of precious metals depends greatly on their contents in

the processed concentrates. Last year, in 2009, three times more silver was

produced, and gold is by 7.2 % less compared to 2008.

Small quantities of cadmium are produced.

In 2009 a total of 18 413 tons of lead alloys were produced. 80 % from

them were produced by “Monbat” JSC, the production being used in the end

products of the enterprise –various types of batteries.

In 2009 the production of zinc alloys increases more than twice and that

of tin composites sharply decreases.

2 805 tons of aluminium alloys were produced at “Stam Trading” JSC

from the processed aluminium waste (incl. 8.2 % from import).

53

Table 3.7

Production of secondary, precious and byproduct metals,

alloys and chemical products (tons, kg.)

Product: 2006 2007 2008 2009

Difference

2009/2008

+/- %

Cadmium ingots, tons 362.6 458.7 467.5 506.8 39 108.4

Bismuth ingots, kg. 85 4 115 3 046 - -3 046

Silver, kg. 60 790 51 155 12 774 39 997 27 223 х3.13

Silver products kg. 13 037 42 676 29 764 н.д.

Gold, kg. 202 307 263 244 -19 92.8

Gold products, kg. 52 24 23 н.д.

Tellurium, kg. 513 - 281 3000 2 719 х10.6

Lead alloys, tons 4 977 6 771 17 524 18 413 889 105.1

Zinc alloys, tons 3 318 9 813 6 803 14 259 7 456 х2.1

Secondary lead, tons - - 8 650 7 644 - 1 006 88.4

Bismuth lead ,tons 830 718 830 780 -50 94.0

Tin alloys, tons 16 7 9 - -9

Aluminium alloys 7 099 8 630 2 805 -5 825 32.5

Zinc sulphate , tons 3 829 3 057 3 884 3 715 -169 95.6

incl. monohydrate 3 537 2 674 3 371 3 476 105 103.1

Sodium bisulphate, tons 6 771 3 922 6 120 2 560 -3 560 41.8

Sulphuric acid, tons 1 024 166 960 774 1 090 936 1 152 580 61 644 105.7

Source : Company data

Data about the processed waste from non-ferrous metals (metal

contents) in 2008 and 2009 by companies – members of BAMI are presented

on Table 3.8. Таблица 3.8

Waste from non-ferrous metals processed at

the metallurgic enterprises, tons

Waste 2007 2008 2009 Difference 2009/2008

total total total +/- %

Copper 34 472 35 267 33 713 -1 554 95.6

incl. - copper 31 997 33 466 33 394 -72 99.8

- brass 2 475 1 801 319 -1 482 17.7

Олово 24 358 20 903 26 483 5 580 126.7

incl. – metal waste 4 145 4 121 9 018 4 897 х2.2

- battery waste 20 213 16 782 17 465 683 104.1

Zinc 6 738 5 873 7 620 1 747 129.7

Aluminium 14 127 13 734 8 933 -4 801 65.0

Total 79 695 75 777 76 749 972 101.3

Source : Company data

54

The table illustrates that in 2009 the total quantity of utilized waste of

non-ferrous metals increases by 1.3 % compared to the previous year. It is

mainly due to the growth with lead and zinc, by 26.7 % and 29.7 %

respectively, compared to 2008.

3.1.5 PRODUCTION OF ROLLED/PRESSED NON-FERROUS METALS

AND ALLOYS

Processing of non-ferrous metals and the manufacturing of R/P metals

and products thereof takes place at several companies in the country.

Data on the production are presented on Table 3.9

Table 3.9 shows that in 2009 the production of R/P HNFM decreased,

whereas that of rolled aluminium increases (106.8 % compared to 2008). This

results in a higher share of rolled aluminium from 52.2 % to 70.3 % of the

total quantity.

Table 3.9

Production of R/P non-ferrous metals and alloys, tons

Product

2006

2007

2008

2009

Difference

2009/2008

% +/- %

R/P HNFM and alloys 55 976 49 105 56 606 27920 29.7 -28 686 49.3

incl. copper 44 909 42 885 41 321 24 793 26.4 -16 528 60.0

brass 11 067 6 220 15 285 3 127 3.3 -12 158 20.5

R/P aluminium - Total 57 355 63 513 61 842 66 063 70.3 4 221 106.8

incl. “Alkomet” JSC 40 415 46 421 43 599 52 955 56.3 9 356 121.5

“Steelmet” JSC 14 890 13 892 14 500 10 870 11.6 -3 630 75.0

„Precise Inter Holding”JSC 2 050 3 200 3 743 2 238 2.4 -1 505 59.8

Total: 113 331 112 618 118 448 93 983 100.0 -24 465 79.3

Source : Company data

Fig.3.6 and Fig.3.7 present the quantities of produced R/P heavy non-

ferrous metals and alloys for the period 2006 – 2009 – total and by kinds.

“Sofia Med” JSC is the main manufacturer of these products. . The

company produces a wide spectrum of rolled and pressed metal: sheet, strips,

discs, bars, rods and profiles.

55

Fig. 3.6

Производство на прокат от ТЦМ, тона

491055660655976

27920

4132142885

44909

24793

15285

622011067

3127

0

10000

20000

30000

40000

50000

60000

2006 г. 2007 г. 2008 г. 2009 г.

Прокат от ТЦМ меден месингов

Production of R/P HNFM, tons

In 2009 a decrease in the production of R/P HNFM is observed (by

50.7%) compared to 2008, the drop in pressed brass and blanks being more

substantial. The produced R/P copper is 88.8 % of the total quantity, and the

R/P brass – 11.2 % (the proportion was 73.0/27.0 in 2008).

In R/P copper rolled metal prevails in quantity, which is 57.3 %. In

2009 the R/P brass produced is only rolled. The total rolled metal in 2009

decreases by 40.6 % compared to 2008, and the produced pressed metal – by

61.4 %.

Fig. 3.7

Производство на прокат от ТЦМ по видове, тона

3437031759

29175

17335

21606

17346

27431

10585

0

5000

10000

15000

20000

25000

30000

35000

40000

2006 г. 2007 г. 2008 г. 2009 г.

валцов прокат пресов и заготовки

Production of R/P HNFM by types, tons

Due to the reduced production of R/P brass only 7 775 tons of foreign

scrap was processed at “Sofia Med” JSC, which is by 57.5 % less than the

quantities processed in 2008.

56

The produced rolled aluminium by companies is shown on Table 3.9,

and the total production and by types appear on Figures 3.8 and 3.9

Fig. 3.8

Производство на алуминиев прокат, тона

57355

63513

61842

66063

52000

54000

56000

58000

60000

62000

64000

66000

68000

2006 г. 2007 г. 2008 г. 2009 г.

Production of R/P aluminium, tons

“Alkomet” JSC is a company specialized in the production of pressed

metal (pipes, rods and profiles), rolled (strips, sheet and folio) and foundry

metal (blanks) of aluminium and aluminium alloys. The company produces

more than 80 % of the R/P aluminium in the country. A number of projects for

reconstruction of the existing c capacities and building of new ones have been

carried out in the past years. In 2009 5.8 million leva were invested. The

following were put into operation: a machine for longitudinal scission of

aluminium foil rolls, a machine for wash out of foil, a local cleaning station for

chemical cleaning of wastewater from production processes in rolling mill

department, and other equipment, improving the technological processes.

52 955 tons of R/P metal was produced at “Alkomet” JSC in 2009

(by 21.5 % more than in 2008). The rolled metal was 36 815 tons (69.5%),

and the pressed – 16 140 (30.5%). Compared to the previous year the rolled

and pressed metal increase by 34.0 % and 17.6 % respectively, and foundry

metal was not produced. In 2009 a bigger share of the company production

goes to products with a higher value added like household and technical foil, at

expenses of strips and sheets. “Alkomet” JSC supplies mainly the European

market with household foil. During the last year the production of coated foil

for one-time-use containers was started.

At “Alkomet” JSC besides primary aluminium ingots, 4 317 of

secondary aluminium was processed, which is by 17.1 % more than in 2008.

“Steelmet” JSC manufactures different types of aluminium profiles and

architectural constructions – doors and windows and façade elements for

construction. They are the only producer in the country of aluminium

57

architectural systems of the brand ETEM Building Systems and of PVC

profiles of the brand IDEA.

In 2008 16.5 % of the R/P aluminium in the country was produced at

“Steelmet” JSC. Compared to 2008 a drop of production by 25 % is observed.

Besides the development of their own production the company is also

engaged in their commercial activity in the country. They are the main

supplier of aluminium sheet and P/R metal (incl. foil), copper and brass tubes,

profiles, fittings, cables, enameled cables, and other imported goods.

“Precise Inter Holding” JSC is the only company in Bulgaria which

produces welded aluminium tubes. In 2009 their production is by 40.2 % less

compared to 2008.

Fig. 3.9

Производство на алуминиев прокат по видове, тона

2810331226

29717

39053

2701029252 33796

30616

0

10000

20000

30000

40000

50000

2006 г. 2007 г. 2008 г. 2009 г.

валцов прокат пресов прокат

Production of R/P aluminum by types, tons

The total quantity of R/P aluminium in the country in 2009 increases by

4 221 tons (6.8 %) compared to 2008.This increase is entirely due to the

growth in production of rolled metal by 7 827 tons (growth of 25.1 %). As far

as pressed metal is concerned (excluding blanks) there is a decrease – by 3 606

tons (a drop of 11.8 %). Rolled metal represents 59.1 % of the total

production, and the pressed – 40.9 %.

The total production of rolled metal of non-ferrous metals and alloys in

2009 amounts to 56 388 tons (60 % of the total production), and the

production of pressed metal and blanks – 37 595 tons (40 %). Compared to

2008 there is a drop of 4 013 tons in rolled metal and 20 452 tons in pressed

metal (including blanks).

The production of R/P heavy and light NF metals goes down by

24465 tons in total completely as a result of the drop in production of R/P

HNFM.

58

3.2. TRADE TURNOVER AND CONSUMPTION

OF NON-FERROUS METALS AND ALLOYS

3.2.1. IMPORT OF NON-FERROUS METALS AND FINISHED

PRODUCTS

The quantity of imported non-ferrous metals, alloys and finished

products during the last four years is shown on Table 3.10.

The import of cathode copper comes mainly from Russia (90.4 %).

Copper scrap is imported from Romania (45.2 %), Turkey (15.7 %),

Greece (9.5 %), and Macedonia (6.1 %), bars and profiles – from Turkey

(55.1 %), Greece (27.0 %), and Italy (13.3 %). Main supplier of copper wire

is Turkey with 85.1 % of the import. Sheet, plates and strips come from

Great Britain (29.1 %), Greece (16.7 %), and Turkey (15.9 %), copper foil

from China ( 56.7 %) and Turkey (18.5 %). Copper tubes are imported from

Greece (32.0%), Turkey (20.4 %), and Italy (12.4 %).

Lead ingots originate from Poland (36.1 %), Sweden (26.9 %), and

Ukraine (20.0 %). The main part of import of pure lead scrap comes from

Romania (55.1 %), Hungary (25 %), and Greece (6.5 %).

Zinc ingots are imported from Poland (56.7 %) and Italy (26.3 %), R/P

zinc – from Finland (34.2%), the Czech Republic (15.1 %), and Germany

(11.8 %). The import of pure zinc scrap comes mainly from Romania.

Aluminium takes the biggest part in the import of non-ferrous metals

since it is not produced in the country and the consumption of ingot metal is

secured only by import. It is imported from Romania (21.4 %), Georgia (18.4

%), Italy (18 %), and Norway (12.5%).

The main part of aluminium scrap import originates from Romania

(79.2 %).

The import of aluminium bars and profiles goes down and it is chiefly

from Turkey (64.2 %) and Greece (14.3 %). Aluminium wire is imported

principally from Romania (90.3 %). Compared to 2008 the import of

aluminium sheet, plates and strips goes down. It is done from Germany –

40.7 %, followed by Greece (16.6 %) and Spain (9.5 %). The import of

aluminium foil is almost twice smaller – by 2 658 tons (the deliveries from

Germany are 38.4 % of the total quantity, Greece – 22.1 % and Turkey –

16.1%).

59

Table 3.10

Import of non-ferrous metals, scrap and finished products, tons

Products 2006 2007 2008 2009

Difference

2009/2008

+/- %

Copper, total, incl. 40 852 57 278 70 258 38 529 -31 729 54.8

Anodes 1 716 2 070 920 177 -743 19.2

Cathodes, alloys and blanks 17 791 26 111 29 462 7 799 -21 663 26.5

Scrap 7 544 12 899 23 854 20 729 -3 125 86.9

Bars and sections 3 010 3 252 4 595 3 173 -1 422 69.1

Wire 6 987 9 032 6 811 4 001 -2 810 58.7

Sheets and foil 1 501 1 851 2 353 1 012 -1 341 43.0

Pipes 2 303 2 063 2 262 1 638 -624 72.4

Lead, total, incl. 12 849 19 616 21 827 22 952 1 125 105.2

Ingots and alloys 11 305 15 853 15 528 10 181 -5 347 65.6

Scrap (clean) 1 365 3 338 5 830 12 143 6 313 х2.08

R/P metal 179 425 469 628 159 134.0

Zinc, total, incl. 4 789 3 956 5 816 2 978 -2 838 51.2

Ingot and alloys 4 026 3 330 5 094 2 480 -2 614 48.7

Scrap 219 331 257 194 -63 75.6

R/P metal 544 295 465 304 -161 65.3

Aluminum, total, incl. 110 793 127 894 115 287 98 342 -16 945 85.3

Ingots and alloys 66 551 59 466 61 295 55 807 -5 488 91.0

Scrap 2 179 3 554 4 027 3 013 -1 014 74.8

Bars and profiles 15 347 22 096 22 501 15 457 -7 044 68.7

Wire 4 746 7 508 4 732 4 772 40 100.9

Sheets and strips 15 673 18 915 15 353 14 591 -762 95.0

Foil 5 899 15 605 6 545 3 887 -2 658 59.4

Pipes 398 750 834 815 -19 97.7

Total 169 283 208 744 213 188 162 801 -50 387 76.4

Value, million USD 613.0 863.0 979.4 494.0 -485.4 50.4

Value, million leva 955.9 1 225.5 1 306.4 691.6 -614.8 52.9

Source : Customs stastistics

Compared to 2008 the total import of non-ferrous metals and products

goes down by 23.6 % in 2009. With copper there is a drop both in the import

of cathode copper and waste (scrap), and the import of R/P metal. With lead

the import of lead ingots decreases as well, but the quantity of imported scrap

goes up. The import of aluminium ingots and aluminium waste decreases, and

the positive trend for lower import of finished products (foil, bars and

profiles).

60

3.2.2. EXPORT OF NON-FERROUS METALS AND FINISHED

PRODUCTS

The export of our country during the last four years is presented on

Table 3.11.

Anodic copper is exported mainly to Belgium (84.6 %).

The export of cathode copper in 2009 increases significantly and its

main part is directed to Turkey (26.8 %), Serbia (13.4 %), and Germany (12.9

%).

Copper bars and sections are sold principally in the EU – Germany

(31.6 %), Italy (15.5 %), and Poland (13.6 %). The main part of copper wire is

exported to Romania (55.8 %) and Poland (19.3%). Sheet, plates, and strips

are also exported to EU countries – Italy with 26.2 %, Germany with 16 %,

and Greece with 11.2 % of the total export. From the other countries where the

export goes, the biggest quantities are for Switzerland (9 %).

Lead ingots are exported chiefly to non-EU countries, the relation being

75.8 % to 24.2 %.

54.2 % of the zinc ingots are exported for the EU, mainly to Greece

(22.0 %), Italy (13.6 %) and Austria (5.5 %). Among third countries the main

importer of Bulgarian zinc is Turkey (40 %).

From the processed secondary raw materials aluminium and

aluminium alloys are manufactured and exported. 78.2 % are sold to EU

countries.

87.5 % of the export of aluminium bars and profiles is also directed to

EU countries – to Germany (41.6 %), Greece (9.7 %), and Romania (7.4 %).

83.9 % of the strips and sheet are also exported to EU countries, the

quantities for Austria (9.4 %), Greece (9.3 %), and Italy (9.1 %) being more

significant. Aluminium foil is also sold mainly in the EU – 88.3 % and it is

directed to Germany (22.7 %), Poland (22.6 %), and Italy (11.9 %). 86.9 % of

the aluminum pipes are also exported to the EU. Germany (38.4 %), France

(9.4 %), and Austria (9.1 %) have a more substantial share of them.

Aluminum waste has the biggest share in the export of secondary raw

materials, followed by copper scrap. In comparison to 2008 an increase in the

exported quantities is observed. There is a higher export to non-EU countries.

38.5 % of the copper scrap are sold in the EU, and 61.5 % tin other

(third)в countries, including China with 42.7 %.

Aluminum waste is sold mainly to India (24.2 %), Greece (18.8 %),

and China (13.9 %). The share of export to EU countries is 39.5 %.

The metallurgical companies also produce cadmium, which is exported

as well, and its export in 2009 is by 51.9 % more than in 2008.

61

Table 3.11

Export of non-ferrous metals and finished products, in tons

Products 2006 2007 2008 2009

Difference

2009/2008

+/- %

Copper, total, incl. 272 280 246 422 309 990 268 167 -41 823 86.5

Anodic copper 168 463 139 251 146 271 73 379 -72 892 50.2

Electrolytic copper 40 082 45 760 105 748 152 873 47 126 144.6

Scrap 13 113 11 590 10 547 10 718 171 101.6

Bars and sections 14 356 15 618 16 084 11 231 -4 853 69.8

Wire 1 573 2 842 2 913 2 384 -529 81.9

Sheets, strips and foil 34 077 31 252 28 241 17 496 -10 746 61.9

Pipes 616 109 188 87 -101 46.4

Lead, total, incl. 66 421 67 826 81 375 78 285 -3 090 96.2

Ingots 65 377 66 384 80 972 77 712 -3 260 96.0

R/P lead 896 1 377 259 526 267 х2.03

Scrap (clean) 148 65 144 47 -97 32.6

Zinc, total, incl. 79 358 92 086 97 993 89 304 -8 689 91.1

Ingots 77 501 90 572 96 678 87 008 -9 670 90.0

R/P metal 3 3 22 70 48 х3.2

Scrap 1 854 1 511 1 293 2 226 933 172.1

Aluminum, total incl. 85 279 92 813 85 375 73 706 -11 669 86.3

Ingots 11 692 11 062 10 206 3 254 -6 952 31.9

Scrap 29 244 23 577 18 478 20 577 2 099 111.4

Bars and sections 14 227 15 459 16 273 14 191 -2 082 87.2

Wire 41 0 384 518 134 134.8

Strips and sheet 8 048 10 566 10 442 9 051 -1 391 86.7

Foil 17 350 25 139 20 526 19 172 -1 354 93.4

Pipes 4 677 7 010 9 067 6 943 -2 124 76.6

Total 503 338 499 147 574 733 509 463 -65 270 88.6

Value, million USD 2 491.8 2 617.5 3 038.5 1 918.3 -1 120.2 63.1

Value, million leva 3 885.8 3 716.8 4 053.0 2 685.6 -1367.4 66.3

Source : Customs stastistic

The average annual prices at which the basic metals were exported

during the last three years are shown on Table 3.12. Table 3.12

Metals 2007 2008 2009

USD/ton leva/ton USD/ton leva/ton USD/ton leva/ton

Electrolytic

(refining) copper

6 818 9 682 6586 8784 5 082 9 940

Lead 2 667 3 787 2272 3030 1716 3 357

Zinc 3 566 5 063 2114 2819 1 709 3 343

Source : Customs stastistics and NSI data

62

The data show that in 2009 again the average prices of the exported

basic metals (electrolytic copper, lead and zinc) in USD/t. went down

compared to 2008. For the last three years the drop with zinc is more than

50%, with lead – by about 35 %, and with electrolytic copper – by 25.5 %.

Due to changes in the USD/Euro rate, the prices in leva have a smaller

diversions (excluding zinc).

From tables 3.10 and 3.11 the following can be concluded:

Compared to 2008 the export volume goes down by 11.4 %, but still

exceeds the import of non-ferrous metals and finished products more than

three times.

In value the export of non-ferrous metals and products in 2009 amounts

to 2 685.6 million leva and decreases by 33.7 % compared to 2008. It is due

both to reduction in the volumes of some products, and to the lower average

export prices. The import is for 691.6 million leva and goes down by 47.1 % in

comparison to the previous year.

The above data show that disregarding the drop in export in 2009 again

the foreign trade balance in non-ferrous metallurgy is positive.

Bulgarian export of lead ingots represents 5.07 % of world trade in lead,

and import – 0.62 %. For 2008 these figures are 5.87 % and 1.05 %

respectively.

In 2009 the Bulgarian export of zinc is 2.48 % of world trade turnover

(2.96 % in 2008), and import – 0.076 %. (0.172 % in 2008).

3.2.3. FOREIGN TRADE TURNOVER OF NON-FERROUS

METALS

The foreign trade turnover of non-ferrous metals in quantity is shown on

Table 3.13 and Fig. 3.10. Table 3.13

Foreign trade turnover of non- ferrous metals, in tons

Indices

2006

2007

2008

2009

Differnce

2009/2008

% +/- %

Import 169 283 208 744 213 188 162 801 24.2 -50 387 76.4

Export 503 338 499 147 574 733 509 463 75.8 -65 270 88.6

Total turnover 672 621 707 891 787 921 672 264 100.0 -115 657 85.3

Balance 334 055 290 403 361 545 346 662 -14 883 95.9

Source: Customs stastistics

The data on Table 3.13 and Fig.3.10 show that in 2009 there is a drop of

14.7 % in the quantity, and this drop is higher in the import than in the export.

63

That is the reason why in 2009 again the sector continues to have a

significant positive balance (about 1.5 billion USD).

Fig. 3.10

Внос и износ на цветни метали, скрап и изделия от тях, тона

503338 499147574733

509463

169283 162801213188208744

0

100000

200000

300000

400000

500000

600000

700000

2006 г. 2007 г. 2008 г. 2009 г.

износ-общо внос-общо

Import and export of non-ferrous metals and finished products, tons

3.2.4. CONSUMPTION OF NON-FERROUS METALS

AND R/P METAL

The total sale of Bulgarian production of non-ferrous metals and R/P

metal, incl. on the home market and for export, is shown on Table3.14.

Table 3.14

Consumption of non- ferrous metals and rolled/pressed metal

in 2008 and 2009, tons

Production types Export Home market Total

2008 2009 2008 2009 2008 2009

Anodic copper

Electrolytic copper 139 824

82 440

75 873

175 000

-

31 260

-

25 000

139 824

113 700

75 783

200 000

Lead ingots 75 572 77 248 7 787 3 218 83 359 80 466

Zinc ingots 83 872 71 420 5 508 4 278 89 380 75 698

R/P metal from HNFM 53 847 28 400 5 639 2 532 59 486 30 932

incl. copper 40 238 25 381 1 433 1 271 41 671 26 652

brass 13 609 3 019 4 206 1 261 17 815 4 280

R/P aluminum 49 494 46 499 12 390 7 727 61 884 54 226

Total 485 049 474 350 62 584 42 755 547 633 517 105

Source : Company data

64

The data from Table 3.14 show that in 2009 12.5 % of the local

consumption of electrolytic copper was on the home market, and the exported

quantities were 87.5 %. In comparison to 2008 the export has gone up more

than twice, and the production sold on the home market has gone down by

20%.

In 2009 96.0 % of the lead ingots were exported (90.7 % in 2008) and

4.0 % sold on the home market (9.3 % in 2008).

The distribution of sales of zinc in 2009 is as follows: on the home

market 5.7 % (6.2 % in 2008) and 94.3 % – for export (93.8 % in 2008).

The sales of R/P HNFM on the home market in 2009 make up 8.2 %

(9.5 % in 2008), for export – 91.8 % (90.5 % in 2008).

The rolled/pressed aluminum sold by the three producer companies on

the home market is 14.2 %, export - 85.8 %. The ratio in 2008 was 20 % to

80%.

According to companies’ data the total export of basic non-ferrous

metals (copper, lead and zinc) represents 92.5 % of their sales (89.6 % in

2008) thus increasing by 4.7 % compared to the previous year. 7.5 % were

directed to the home market (10.4 % in 2008).

A comparison of the export data from the exporting companies with the

official customs data reveals the following:

1. The export of copper (electrolytic and anodic) according to data from

the producers amounts to 250 873 tons, whereas the customs report

226 252 tons. The difference is 24 621 tons (9.8 %).

2. The export of lead by the producers amounts to 77 248 tons, the

customs data report 77 712 tons. The difference is 464 tons (0.6 % ).

3. Companies’ data report export of 71 420 tons of zinc, customs data -

87 008 tons. The difference is 15 588 tons (21.8 %).

4. Some differences appear for R/P HNFM – 28 400 tons reported by

the producers, 31 198 tons by customs, or a difference of – 2 798 т

(9.8 %).

5. For rolled/pressed aluminium these figures are 46 499 tons and 49

875 tons or a difference of 3 376 tons (7.3 %).

Different factors could be the reasons for these differences, but ричини

за тези различия могат да се търсят в различни фактори, but the overall

picture and possible conclusions on the particular positions would not change

significantly.

65

3.2.5. ACTUAL CONSUMPTION OF NON-FERROUS METALS

AND ALLOYS

The home consumption is formed by the sales of production of our

factories and the import. The data for the last four years are shown on Table

3.15.

The data show that in 2009 the real home consumption of basic non-

ferrous metals goes down by 27.1 %.

The production of Bulgarian companies covers 61.4 % of the home

consumption of electrolytic copper, lead and zinc (47.1 % in 2008), and

the import provides the other 38.6 % (52.9 % in 2008). The share of home

consumption of electrolytic copper increases from 51.5 % to 76.2 % , for zinc

- from 52.0 % to 63.3 %, and with lead it goes down from 33.4 % to 24 %.

Table 3.15

Home consumption of non-ferrous metals and

rolled/pressed metal, tons

Products Origin 2006 2007 2008 2009

%

Electrolytic copper Locally produced 33 509 37 455 31 260 25 000 76.2

Import 17 791 26 111 29 462 7 799 23.8

Consumption 51 300 63 566 60 722 32 799 100.0

Lead Locally produced 8 631 11 050 7 787 3 218 24.0

Import 11 305 15 853 15 528 10 181 76.0

Consumption 19 936 26 903 23 315 13 399 100.0

Zinc Locally produced 11 815 6 666 5 508 4 278 63.3

Import 4 026 3 330 5 094 2 480 36.7

Consumption 15 841 9 996 10 602 6 758 100.0

Rolled/pressed

HNFM

Locally produced 2 858 4 424 5 639 2 532 20.5

Import 13 801 16 197 16 021 9 824 79.5

Consumption 16 659 20 621 21 660 12 356 100.0

Rolled/pressed

aluminum

Locally produced 11 497 12 484 12 390 7 727 16.4

Import 42 063 64 874 49 965 39 522 83.6

Consumption 53 560 77 358 62 355 47 249 100.0

Source: Customs stastistics (import) and company information (home sales)

66

Fig. 3.12

Вътрешно потребление на основните цветни метали, тона

53955

3249633122

50084

10046594639

52956

44555

55171

20460

45294

87077

0

20000

40000

60000

80000

100000

120000

2006 г. 2007 г. 2008 г. 2009 г.

вътрешна реализация внос потребление

Home consumption of the basic NFM, tons

The home consumption of the two types of R/P metal in was 59 605tons

in total (by 29.1 % less than in 2008).

With R/P HNFM the actual home consumption decreases nearly two

times. The share of home production goes down from 26 % in 2008 to 20.5 %

in 2009. The data show that with an overall decrease of consumption, the

unfavorable structure for supplying the needs of the home market mainly from

import continues.

As to rolled/pressed aluminium, the share of home production in the

real consumption decreases from 19.9 % in 2008 to 16.4 % in 2009. The drop

in real consumption, compared to 2008, is 24.2%, the import of this

rolled.pressed metal is also going down.

The consumption of non-ferrous metals and R/P products is also

expressed by means of the so-called visible consumption calculated by the

formula:

VC = (M + I) – E, where

VC – visible consumption (tons)

VpCC – visible per capita consumption, (kg)

M – manufactured non-ferrous metals and R/P products (tons)

I – imported NFM, R/P products (tons)

E – exported NFM, R/P products (tons)

67

The visible consumption (VC) of non-ferrous metals and rolled/pressed

products in 2008 in tons, and the per capita consumption (VPCC) in kilograms

are presented on Table 3.16.

Table 3.16

Visible consumption of non-ferrous metals and rolled/pressed products in 2008

tons, kg

Products П В И ВП ВПГН

Electrolytic copper 197 234 7 799 152 873 52 160 6.90

Lead 83 104 10 181 77 712 15 573 2.06

Zinc 92 676 2 480 87 008 8 148 1.08

R/P HNFM 27 920 9 824 31 198 6 546 0.87

R/P aluminium 66 063 39 522 49 875 55 710 7.37

Total 466 997 69 806 398 666 138 137 18.26

Source : Customs stastistics (import and export) and company data (production)

The analysis of the data reveals that in 2009 a drop in the total visible

consumption is observed by 15.7 % compared to 2008 and a drop of about

15% per capita. In 2009 the Bulgarian industry is really affected by the

economical crisis, which resulted in lower consumption of non-ferrous metals

and rolled/pressed products in the consumer sectors such as construction,

machine building, household products, transport, etc.