Home
/
News
/

Ukraine steel production surges 9% mom in January, up 1% yoy

Ukraine steel production surges 9% mom in January, up 1% yoy

11 February 2013

Ukrainian steel makers manufactured 2.8 mmt of steel in January, which is 1% higher yoy and a 9% jump mom. Among the strongest advancers were Alchevsk Steel (ALMK UK), increasing steel output 22.9% yoy and 8% mom to 399 kt. Production at Azovstal (AZST UK) rebounded 15% mom to 390 kt (-1% yoy). Steel output by Yenakiieve Steel (ENMZ UK) surged 34% mom (-1% yoy) to 244 kt. The January operating results for Illich Steel (MMKI UK) improved 6% mom to 436 kt (-5% yoy). The sector intends to smelt 2.54 mmt of steel in February (-8% mom in monthly, -1% mom in daily terms), according to preliminary plans announced by the Metallurgprom industry association in mid-January.

Roman Topolyuk: Steel output in January came in 3% more than the industry association had previously forecasted, and much better than our conservative expectations. Thus, Ukrainian producers improved their steelmaking capacity load to 76% in January from 70% in December. The industry performance would have been even better if the non-listed Donetsk Electrometallurgical Steel Works, a subsidiary of Russian company Mechel, didn’t remain idle in January (2% of Ukraine’s total production in 2012) due to problems with raw material supplies and finished product sales.

The construction finished steel market subsegment got worse by the year’s end, partly reflected in a price correction that we estimate was seasonal (average rebar prices in December slid 2% mom to USD 585/t). ArcelorMittal Kryviy Rih, the largest Ukrainian steelmaking enterprise that also produces construction steel, underwent a 2% mom production decline as well. The bright exception in the subsegment was Yenakiieve Steel, which spent December with a rare low capacity utilization, but recovered its output in January.

On the contrary, prices for slabs (semi-product for flat steel) surged 10% mom in December to USD 493/t and prices for hot rolled coil rose 2% mom to USD 522/t. This helped flat steel producers – including Azovstal, Alchevsk Steel and Illich Steel – to declare a 10-23% mom increase in sales, triggering production growth.

Latest News

News

23

02/2022

Separatists may claim entire territories of two Ukrainian regions

Russia has recognized “all fundamental documents” of the self-proclaimed Donetsk and Luhansk People’s Republics (DNR...

News

23

02/2022

U.K. to provide USD 500 mln loan guarantee for Ukraine as IMF mission starts

The British government is going to provide up to USD 500 mln in loan guarantees...

News

23

02/2022

MinFin bond auction receipts jump to UAH 3.5 bln

Ukraine’s Finance Ministry raised UAH 3.3 bln and EUR 7.2 mln (the total equivalent of...