In the first half of this year, the economic and financial situation of SA Metalferos, in which the state holds 78.28% of the assets, continued to deteriorate. This derives from the company’s financial report.
Thus, in the first six months of 2023, the company recorded a turnover of only 52.33 million lei, which is about 3.5 times lower than in the same period of 2022, noi.md reported citing Mold-Street.com. Data from the company’s financial report show that in the first half of 2023, Metalferos recorded a loss of 14.79 million lei, while in the corresponding period of 2022 it recorded a profit of 8.17 million lei.
The company’s management does not clearly explain the reasons that led to such an extreme downturn, but it has already become a tendency. Last year, Metalferos’ turnover decreased 8 times compared to 2021, to just 217 million lei, while in 2021 it totaled 1.74 billion lei, the best result in its history. In its annual report, the management names as main obstacles and risks in Metalferos’ activity the restrictions imposed by the authorities, imperfections in the business legislation, the specificity of the ferrous and non-ferrous metal waste business, competition, lack of specialists, weather conditions, price and currency fluctuations.
We should recall that since November 2021, the European Union imposed a ban on the export of metal wastes and their alloys in metal form from the Republic of Moldova. The main importer of metal waste from the EU countries was the Ribnita Metallurgical Plant. Imports came mainly from Romania, and the ban affected this particular plant. As a result, Ribnita Metallurgical Plant had to reorient towards the purchase of waste on the domestic market, but not through Metalferos, as it had been until 2020, but through subsidiaries. Another factor is that the export market for ferrous and non-ferrous metals has been demonopolized since the end of 2019 and there are players in the market that have squeezed Metalferos.
As a reminder, the Ministry of Economic Development and Digitalization recently said that it is considering the possibility of establishing a state monopoly on the activity of scrap and waste of ferrous and non-ferrous metals to economic agents located on the territory of Moldova and which do not have tax relations with its budgetary system. The ministry cites the development of the situation on the scrap metal market as the reason, without giving clarification.
Basic information on SA Metalferos: Founded in July 1995. Authorized capital - 3,590,420 lei. Main shareholders: Public Property Agency - 78.28% and Alla Volk - 5.13%, manager - Andrei Ivantsov.