Consumption of steel products in Ukraine fell by 27.3% y/y in Q1

In January-March 2024, Ukraine reduced consumption of steel products (rolled products and semi-finished products) by 27.3% compared to the same period in 2023, to 610.4 thousand tons. This is evidenced by the data of Ukrmetalurgprom.

In the first quarter of 2024, the country imported 207.5 thousand tons of steel products, up 31.4% compared to January-March 2023. Imports account for 41% of the domestic rolled steel consumption market in the country. The share of imports in domestic consumption of steel products increased by 16.3 percentage points y/y.

The structure of imports is characterized by a significant dominance of flat products over long products – 83.1% and 15.2%, respectively. In January-March 2023, the dominance of flat products over long products was slightly lower, but still noticeable – 80.7% and almost 18%, respectively.

Overall, in January-March, Ukrainian steelmakers produced 1.39 million tons of rolled products, up 35.5% year-on-year. About 1.029 million tons of steel products were exported, up 161.8% y/y.

The domestic market received 360 thousand tons of rolled and semi-finished products, down 43% y/y. In January-March 2024, Ukrainian steelmakers reduced shipments to the domestic market, with the share of exports in total output amounting to 74.1% in the first quarter, compared to 38.3% a year ago.

The share of flat products in export deliveries increased to 40.7% in the first quarter, up from 31.3% a year steel enterprises increased rolled steel production by 9.3% month-on-month and by 12.1% y/y – to 488.7 thousand tons.

As GMK Center reported earlier, in 2023, the country’s steelmakers increased rolled steel production by 0.4% year-on-year – to 5.37 million tons. Last year, consumption of steel products increased by 119.3% compared to 2022, to 3.506 million tons. Imports amounted to 1.12 million tons (+79.9% y/y), and exports amounted to 2.98 million tons (-31.7% y/y).