Industrial production in Ukraine grew by 8.1% y/y in H1 2024

Production in steel industry and production of finished steel products increased by 29.8% y/y during the period

In January-June 2024, the volume of industrial production in Ukraine increased by 8.1% compared to the same period in 2023. In June, the indicator decreased by 0.3% compared to the same month of the previous year and by 6.2% m/m. This is evidenced by State Statistics Service’s data.

During the first half of the year, production in steel industry and the production of finished steel products increased by 29.8% compared to the first half of 2023, and in the mining of metal ores – by 27.6% y/y.

Production in the iron and steel industry of Ukraine continued its upward trend. This is facilitated by a low base of comparison, as well as an increase in the workload of steel and mining enterprises due to the opening of sea exports for iron and steel cargoes. At the same time, in the second half of the year, the pace of recovery is likely to slow down due to a number of factors, including higher prices for electricity, logistics, and a slowdown in the global market for steel and raw materials.

In June 2024, production in steel industry increased by 34% compared to June 2023 and decreased by 4.5% compared to the previous month. In the extraction of iron ores, the indicator increased by 30.1% y/y and by 7.5% m/m.

As GMK Center reported earlier, in 2023 industrial production in Ukraine increased by 5.9% compared to 2022. In December, the indicator increased by 22.6% compared to the corresponding month of the previous year and by 7.9% m/m.

Production in steel sector and the production of finished steel products increased by 8% compared to 2022, and in the extraction of metal ores – decreased by 10.2% y/y.

The annual indicator in steel sector increased due to the improvement of the situation in the fourth quarter of 2023, as during January-September the results were negative. At the same time, the growth is the result of a low base of comparison due to the weak state of the industry in October-December 2022, when the Ukrainian industry suffered from problems with the supply of electricity due to shelling by Russian troops of the Ukrainian energy infrastructure.

The mining sector also improved significantly at the end of the year, reducing the pace of the year-on-year decline. This was facilitated by the opening of the sea export corridor for iron and steel cargoes and, accordingly, an increase in the loading of mining and processing plants.