DMZ in June reduced the production of rolled products by 69.2% m/m

In June 2024, the Dnipro Metallurgical Plant (DMZ) reduced the production of rolled metal by 69.2% compared to the previous month – to 2.4 thousand tons. Compared to the same month in 2023, the indicator fell by 83.2%. This is stated in the corporate newspaper DCH Steel.

The production of metallurgical coke for the month decreased by 3.6% compared to May and by 26.9% compared to June 2023 – to 24.4 thousand tons.

In January-June 2024, the production of rolled products at the DMZ decreased by 40.5% y/y, to 33.8 thousand tons, and coke output increased by 1.1%, to 143.5 thousand tons.

As the company notes, during the next rolling campaign, which lasted 13 days in May and June, the rolling shop No. 2 produced about 10 thousand tons of products, most of which are currently sold.

«Due to the lack of orders, the next rental campaign was re-carried. Start production in the first rolling shop is planned in the third decade of July, «summarizes the DMZ.

After a positive beginning of the year, which marked the establishment of export of mining and metallurgical complex products by seaports and, accordingly, increasing the capacity of domestic producers, in the second half of the year the situation may deteriorate significantly due to problems with energy supply, lack of personnel due to mobilization, weakening demand, etc., and negatively affect the annual results of metallurgists and industry as a whole.

In particular, on June 1, 2024, CMU Resolution No. 661 amended the «Regulation on the peculiarities of electricity imports under the legal regime of martial law in Ukraine,» which obliges Ukrainian producers to buy at least 80% of electricity in the EU at a European price in order to avoid forced restriction of electricity supply. Such a decision of the Ukrainian government can lead to numerous negative consequences for domestic energy-dependent industrial companies. Previously, this proportion was 30/70.

As GMK Center reported earlier, by the end of 2023, the DMZ increased its production of rolled steel by 86.2% compared to 2022 – up to 105.6 thousand tons. The production of metallurgical coke at the enterprise over the past year increased by 38.5% compared to 2022 – up to 292.7 thousand tons.

Last year, DMZ rolling shops focused on the manufacture of a mine rack, mine rails, small volumes of channels and corners for the Ukrainian market. In addition, the company resumed the production of profiles according to European standards.

Dnipro Metallurgical Plant is one of the largest metallurgical enterprises in Ukraine. It is part of DCH Steel Group. DMZ produces the largest range of channels and corners in Ukraine. Currently, the company is the only domestic manufacturer of special profiles for engineering and mining.