Steel output up 2% mom in January, but down 2% yoy
2 February 2012
Ukrainian steel makers manufactured 2.8 mmt of steel in January 2012 (+2% mom, -2% yoy), Interfax reported yesterday. Output at Azovstal (AZST UK) and MMK Illicha (MMKI UK), Metinvest subsidiaries, decreased 19% and 14% yoy, respectively, but was flat in mom terms. Yenakiieve Steel (ENMZ UK), another Metinvest subsidiary, increased output 9% yoy and 13% mom. Output at Alchevsk Iron & Steel (ALMK UK), part of the Industrial Union of Donbas, was up 16% yoy, but down 2% mom.
Steel production in Ukraine, kt
————————————————————-
12/2011 01/2012 mom 01/2011 yoy
————————————————————-
Azovstal 395 395 0.0% 485 -18.6%
MMK Illicha Steel 456 458 0.4% 530 -13.6%
Alchevsk Iron & Steel 332 325 -2.1% 280 16.0%
Yenakiieve Steel 219 247 12.8% 226 9.0%
————————————————————-
Total in Ukraine 2,759 2,819 2.2% 2,864 -1.6%
————————————————————-
Source: Interfax
Roman Topolyuk: The increase in output at Yenakiieve Steel in January was supported by a stronger market for long products, while prices on flat products manufactured by Azovstal, MMK Illicha and Alchevsk Iron & Steel have been weaker in the last two months. The production declines at Azovstal and MMK Illicha is related to a high comparison base. Overall, Ukraine’s steel sector going through a tough period caused by a global slowdown in demand. We think this trend might reverse as steel traders and consumers restock in March-April, which could push production and prices higher by end-1Q12.
