Rolled steel production by Ukrainian steelmakers was down by 71.96% y-o-y to 5.35 million tonnes (mnt) during calendar year 2022 (CY22). Pig iron smelting and steel production fell by 70% on the year to 6.39 mnt and 6.26 mnt respectively.
Ukraine’s steel production stood at 106,000 tonnes (t) in December 2022, down 66% against the previous month, while on an annualized basis production volumes fell sharply by 93.9% during the period. Rolled steel production fell by 51.3% m-o-m to 108,000 t in December 2022. The same plunged by 92.9% on a y-o-y basis. Pig iron smelting dropped by 26.3% m-o-m to 247,000 t in December, while the same fell by 85.7% y-o-y.
Production volumes were affected by logistics problems, the unfavourable situations in the global steel market and the destruction being inflicted by the hostilities upon two of Ukraine’s largest steelmakers — Azovstal and IIyich Iron and SteelWorks of Mariupol.
Post-Russia’s invasion of Ukraine at the end of February 2022, Europe became the only market for Ukrainian products. Moreover, the cost of shipments of rolled-steel products almost doubled as delivery by rail became more difficult and expensive, while the uncertainties impacted steel demand.
Ukrainian iron and steel enterprises operated with a low capacity utilization and even temporarily shut down some of them. In addition, on 10 October 2022, the Russian Federation shelled the country’s state electricity infrastructure, causing further disruptions to energy supplies to the steel industry.
~GMK Center
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