DMZ notes a slowdown in activity on the steel market

Due to the uncertainty, the company is postponing the rental campaigns in both workshops

Dnipro Metallurgical Plant (DMZ), part of the DCH group, has noted a slowdown in activity on the steel market. Yuriy Mikhailov, Deputy CEO for Metallurgical Production at DMZ, said this in the company’s corporate newspaper.

«We are now witnessing a certain market halt. In previous campaigns, customers were quick enough to deliver products to consumers, but now we have been working ‘to stock’. We have produced about 10 thousand tons of products, but they are still in our custody,» he comments.

The decline in demand for steel products affects the company’s future operations. The next campaigns in both shops are being postponed and negotiations with partners are underway.

«If we have good product shipment dynamics by the end of June, we will be able to plan for the next month. For now, we are carrying out repairs to be fully prepared,» added Mikhailov.

Rolling Shop No. 2 recently completed another campaign that lasted 13 days. The specialists produced standard channel profiles (10 to 30) and 125 angles. During the campaign, for the first time, a channel 10 was produced from a 150×150 billet supplied to DMZ by customers. As a result, about 1 thousand tons of channel 10 were rolled.

«One of the most pressing issues today is energy saving. To minimize their consumption, the campaign was carried out seven days a week. It was quite difficult, given the shortage of staff, but it made it possible to stay within the limits,» the statement said.

As GMK Center reported earlier, in May 2024, DMZ reduced its rolled steel production by 27.3% y/y to 7.9 thousand tons. The figure increased by 7% compared to the same month in 2023. In January-May, rolled steel production decreased by 29% y/y – to 30 thousand tons.

Dnipro Metallurgical Plant is one of the largest steel enterprises in Ukraine. It is part of DCH Steel, a division of DCH Group. DMZ produces the largest range of channels and angles in Ukraine. Currently, the company is the only domestic producer of special profiles for the machine building and mining industries.