Ukrainian steel output decreases 15% yoy in October

Ukraine’s steel production fell 15% yoy to 2.5 mmt in October, according to Interfax yesterday. This was the steepest yoy decline of monthly output in 2012. The figure was off 4% mom in daily output terms. This took total steel production in 10M12 down 8% yoy to 27.0 mmt, worse than the 6% yoy decrease in 9M12. According to data from Ukrstat last week, the export revenues of Ukrainian steelmakers remained low at USD 1.26 bln for the month of August (+6% mom, 22% of total Ukrainian exports), compared to the monthly average of USD 1.54 bln in 2011.

Roman Topolyuk: Weak steel production in October was broadly expected as global demand continues to be weak and prices are still sliding. Export revenues generated by steelmakers in October might go down compared to August when steel output was 5% higher. We do not see any signs yet of potential improvement in November.