Belarusian Steel Works Breaks Losses Records

The level of the metallurgical plant's income is decreasing.

The Belarusian Steel Works (BMZ) remains "stable". To be more precise, in the list of the most loss-making enterprises of the country, the nexta_tv telegram channel writes.

The level of income of the metallurgical plant is falling more and more every year. It is related to high credit load, fall in demand for products, and decline in world prices. The economic consequences of coronavirus and the drop in oil prices are also among possible reason. The decline in prices for the products exceeds the rate of decrease in prices for raw materials by 1.5 times. As a result, losses of export revenue at the BMZ OJSC amounted to $148.5 million in 2019, and at the end of the first half of 2020 - to $76.2 million.

The fall in oil prices, in turn, led to a significant drop in demand for seamless pipes, structural steel and metalware products: metal cord and wire.

The weak economic situation at the plant also had a very strong impact on the working staff - over 200 people were laid off from the plant last year.