The Problems of Economy

11

Authors: Kyzym M. O., Shpilevskyi V. V., Khaustova V. Ye., Antonenko S. V., Мatyushenko I. Yu.

The article establishes that in 2012 the metallurgical industry remained one of the leading industries of Ukraine (accounting for 16% of the industrial production volume and 27.5% of goods export), its scale and importance for the economy of the country reduced after entering the WTO. Evidence is given that the period of 2007-2012 witnessed reduction in the volume of metallurgical output exported from Ukraine both by volume and by value: in 2012 compared with 2007 the share of metallurgic output in Ukraine dropped both in terms of export (1.53 times) and import (1.26 times). Data are provided showing that metallurgical output exported from Ukraine has significantly lower value added than the same imported, and prevalence of the import price over the export price shows a negative growing trend. It is proven that after entering the WTO there generally was a significant decrease in the tariff rates and liberalization of access to world markets for Ukrainian output, simultaneously the domestic market of Ukraine became more open for imported products. It is demonstrated that after entering the WTO the share of Ukrainian metallurgical output exported to third countries which are not members of the EU and the CU in total exports (by value), increased by 1.4% in 2012 compared with 2007, which means that reorientation towards trade with other countries is taking place. The conducted analysis shows that the period of 2007-2012 witnessed reduction in the production output of principal types of metallurgical products, since imbalance in production capacities and the range of manufactured products contributed to an increase in the dependency of the industry on import and its export orientation with growing home market capacity, and due to the low technology level of domestic production and low competitiveness, enterprises of the industry are losing both foreign and domestic markets. The proposed forecast shows that in 2014 surplus capacities on the world metallurgical output market and intense competition will have their effect, yet demand can increase due to recovery of the Eurozone economy, as well as stabilization and growth on North American markets.