To increase competitive advantage, experts say, the players are developing additional services. In addition to traditional cutting, cutting the size and distribution of rolled products, offering customers a more complex work associated with the release of semi-finished products. Alex Sorvachev: "Actively developing, for example, the production of sheet steel formed sections or create a quality hire of such items as masonry grid, demanded the construction sector. If you do it manufactures, a number of client companies simply can not pay attention to you. It is more profitable to purchase made by someone logging rather than create it yourself. However, while such services are not too popular among the firms clients. According to Vitaly Popov, machine-building enterprises, in particular, are not yet ready to abandon its own facilities for pre-processing of metal, which affects the profitability: "If in Moscow at steel service centers, which gives the customer the widest range of services, cost-effectiveness of 50%, the Yekaterinburg, this figure hardly will be over 5%. Alexander Sudnitsyn concludes that the basic services related to the processing unit (cutting to size, packaging, delivery): "This is something that consumers are now necessary. All additional work satisfy the demand only by small private traders. Volatility in prices and increasing competition, experts believe, will lead to consolidation of the market. As pointed out by Alexander Sudnitsyn, manufacturing companies are already coming together to cut marketing costs. As one recent example the June statement by the company, Roman Abramovich, "Millhauz to purchase 41% stake in Evraz Group. Instead of a temporary alliance of traders come large associations, which will be formed according to the schemes of mergers and acquisitions - experts forecast. Leaders of the local market one way or another aware of the need for consolidation. Perhaps some of them will be absorbed by big players of the federal scale. Average traders will join in a partnership or partnerships, to ensure an acceptable level for the purchase price by increasing the volume. Smaller companies will go to the retail segment, "- suggested Alexei Sorvachev. While traders are not trying to mergers, said Mr. Sudnitsyn: "To talk about large-scale consolidation early. There are precedents for the establishment of independent metal-buying pools. Due to this small scale players can go to the producer with significant orders and make some price reductions on its part. But it is not consolidated in its pure form. It is rather a temporary union. I can not imagine how such companies can coordinate their efforts. They usually operate in different niches, they have different needs for the range and volume of purchases. How do they provide financial integration in order to guarantee the producer pre-payment, I do not know. " Traders still have time to prepare for entering Chinese steel Chinese products, according to preliminary estimates, may appear on the Urals steel market in the coming year (for example, galvanized steel), said Vitaly Popov. As the professional portal MetalTorg.ru, in 2005, Chinese steel production increased to 348 million tonnes (up 27% compared with 2004). Excess supply in the country makes the industry of China to seek access to foreign markets. As Alexander Sudnitsyn, China - a serious competitor to Russia in the Middle East and South-East Asia. "Precedents supply the Chinese steel market is in Russia. And in Khabarovsk and the Far East already were imported Chinese fittings and sheet. Was information that in Cherepovets, Lipetsk, and went Chinese metal ", - said Mr. Sudnitsyn. Company "steel case" (St. Petersburg) was the first trader in the Northwest, which has included in its range of Chinese steel. PETER Plischke, commercial director of the Steel case, stressed that the rental of the Middle Kingdom - an ambitious project for Russia's metal merchant: "Cooperation with the Chinese manufacturers makes it possible to buy European quality steel is much cheaper. Russia's steel prices change abruptly, the Chinese manufacturers sensitively monitor trends, cost of raw materials and establish sales prices twice a month. The average Chinese metal by 10% cheaper than Russia's. Julia Rasputin: "What is frightening is that price competition has become much more acute, because the cost of metal, proposed by China, lower than in Russia. Thus, the profitability of our businesses even more noticeable decrease. However, according to Ms. Rasputina, a large-scale penetration of the Urals market of Chinese products is constrained by mismatch Russia GOST. Time-consuming, said Ms. Rasputin, the certification of Chinese have given odds to local traders: "In this period, many large firms can orient and adapt to new market conditions. Although would just start to represent the interests of the Chinese here. " Peter Plischke sees in this a serious problem for the Chinese steel trader: "Steel is not certified. But as soon as we see consumer demands for compliance with Russia's old standards, we will hold this certification. " Chinese products in Russia's regional markets may not let the state, believes Aleksey Sorvachev: "When the Chinese industry and only rose in 2003-2004. introduced new power, the Chinese have strongly defended their products, creating anti-dumping duties, including Russia rolling. Foreign products if they are on their territory are not allowed. Hopefully, our power structures will respond to the same ". Now, said Plischke, no restriction of Chinese imports no. According to him, the customs authorities establish minimum duties on foreign rental, guided by the prices of European manufacturers, as they are - higher Chinese.