Ukraine’s steel production stood at 313,000 tonnes (t) in November 2022, down 1.6% against the previous month, while on an annualized basis production volumes fell sharply by 81.8% during the period. Rolled steel production fell by 23.2% m-o-m to 222,000 t in November 2022. The same plunged by 85.8% on a y-o-y basis. Pig iron smelting dropped by 4% m-o-m to 335,000 t in November.
In a cumulative comparison, rolled steel production by Ukrainian steelmakers was down by 70.1% y-o-y to 5.24 million tonnes (mnt) during January-November, 2022. Pig iron and steel smelting fell by more than 68% on the year to 6.14 mnt and 6.16 mnt respectively.
Ukrainian steelmakers operated at a lower capacity utilisation rate and also stopped production temporarily. For instance, Zaporizhstal operated with only two blast furnaces, Kametstal operated with 80% capacity utilisation, while Arcelor Mittal reduced the workload of its employees to two-third.
In addition to above, production volumes were also impacted by logistics problems, unfavourable situations in the global steel market and destruction due to the hostilities of two of Ukraine’s largest steelmakers – Azovstal and IIyich Iron and SteelWorks of Mariupol.
Post-Russia’s invasion of Ukraine’s, the cost of shipments of rolled-steel products nearly doubled as it became difficult and costlier to deliver through rails, while the uncertainties impacted steel demand.
In October 2022, the Russian Federation shelled the state electricity infrastructure of the country, which further caused energy supply disruptions to the steel industry.
~GMK Center
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