Ukrainian steelmakers ramped up steel production by 5.1% in October

In October 2020, Ukrainian steelmaking companies increased steel production by 5.1% to 5.1 million tons compared to the same period of the previous year, according to the updated statistics of Ukrmetallurgprom.

In particular, in October Ukrainian companies produced:

• 2.6 million tons of sinter ore (by 4.4% more than in October 2019);
• 830 thousand tons of coke (-1.2%);
• 1.7 million tons of pig iron (7.5%);
• 1.5 million tons of rolled products (+2.8%).

In January–October, steel production fell by 5.5% to 17 million tons compared to the same period of the previous year.

In 10M Ukrainian manufacturers produced:

• 26.2 million tons of sinter ore (+0.3% against 10M 2019);
• 8.5 million tons of coke (-6.3%);
• 17.1 million tons of pig iron (-1.1%);
• 15.5 million tons of rolled products (-2.4%);
• 710 thousand tons of pipes (+81.7%).

Ukrmetallurgprom believes that the main reasons for the decline in steel production are the quarantine restrictions, protectionism policies of the governments of economies that have traditionally been key export markets for Ukrainian steelmakers, a cut in prices and shrinking demand for metal products, and excess steel production capacities around the globe amounting to around 440 million tons annually.

According to earlier expectations, November and December of the current year would show much better dynamics compared to the same months of 2019, as November 2019 demonstrated the lowest production results in the history of independent Ukraine.

Importantly, Dniprovskyi Iron and Steel Works (DMK) has recently suspended its blast furnace for an overhaul repair that is expected to take 17 days. This might negatively affect the November results.

As of 11 November 2020, the main operating production facilities included 17 out of 21 blast furnaces, 7 out of 8 open-hearth furnaces, 13 out of 16 BOFs, 6 out of 15 electric-arc furnaces and 16 out of 17 continuous casting machines.

As reported earlier, in 2019, companies of Ukraine’s mining & metals sector decreased steel production by 1.2% to 20.85 million tons, pig iron by 2% to 20.6 million tons, and rolled products by 0.9% to 18.2 million tons against 2018.