Sergey Boltramovich, Grigory Dudarev, and Vladimir Gorelov ... - Etla

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There are prospects for a substantial increase in the share of nonferrous
metallurgy in the Republic of Komi, provided by the development
of a major bauxite deposit already started in the region, as well as
by the possible construction of an alumina-and-aluminum plant.
3.5 Current Cluster Development Macro-trends in the
World
As a result of the closed economy of the USSR, metallurgy and metalworking
companies did not take existing global trends into consideration
when they planned their future development in the Soviet period.
During the 1990s, the situation changed, and Russian enterprises
started to work mostly for export, so now they have to consider the
problems of the sector’s development on a global scale. It is especially
important in an open economy, where international macro-trends inevitably
influence domestic markets. According to experts, the major
macro-trends, which determine the development of the international
metal cluster include the following:
1. Continuing growth of metal consumption in the world
The consumption growth rate has slowed down, compared to the period
from 1960 through the 1980s, but growth itself continues. A substantial
degree of substitution of metals by other types of construction and technological
materials (primarily, plastics) is not expected in the near future.
2. Cyclical nature of metal products consumption
Together with the overall growth in metal consumption, there are
marked stages of a more intense increase in consumption during periods
of economic growth, and stages of recession during periods of economic
crises. For instance, the Asian financial crisis of 1998 triggered an overall
decline in metal consumption, primarily because of shrinking Asian-
Pacific markets.
3. Growing diversification in metal products consumption
As a result of intense development in new high-tech industries (radioelectronics,
vehicle manufacturing, aerospace technologies, etc.), consumers
of metal products in developed countries demand newer and a
greater variety of products.
4. Differentiated development of metal-products markets
Over the last few decades, in addition to the traditional markets of Western
Europe and North America, major growth rates were seen in South-
East Asia, which at present is the most significant market for products of