Industrial production in Ukraine increased by 2.4% y/y in January-September

In January-September 2023, industrial production in Ukraine increased by 2.4% compared to the same period in 2022. In September, the figure increased by 11.7% compared to the same month of the previous year and decreased by 1.1% m/m. This is according to the State Statistics Service.

In January-September, production in steel sector and finished steel products sector decreased by 3.6% compared to the same period in 2022, and in steel ore mining – by 11.6% y/y.

In September 2023, production in the steel industry increased by 46.3% compared to September 2022 and decreased by 9.2% compared to the previous month. In iron ore mining, the figure increased by 89.9% y/y and fell by 3.6% m/m.

The September figures for the iron and steel sector showed an increase compared to the same month in 2022 due to a low comparison base, as the Ukrainian industry operated at low capacity last year as it adjusted to new logistics opportunities and conditions in the European steel market.

At the same time, the drop in September compared to August is likely due to a slowdown in the European steel market due to unfavorable conditions. Overall, since the beginning of 2023, the performance of Ukraine’s steel industry has been gradually improving as the industry adapts to current realities and establishes supply chains.

As GMK Center reported earlier, in 2022 volume of industrial production in Ukraine decreased by 36.9% compared to 2021. In December, the indicator decreased by 44.1% compared to the corresponding month of the previous year and by 3.7% m/m.

At the same time, the worst month in terms of the dynamics of industrial production last year was March, when it fell by 53.7% after the Russian invasion. At the same time, a 2.9% increase was recorded in January, and a 10.1% decrease in February. In the future, the indicator gradually recovered.

Production in steel sector and the production of finished steel products in 2022 decreased by 62.5% compared to 2021, and in iron ore mining – by 61.7%.