(c) NYT

The Group forecasts an increase in the demand for metal products in 2022 by 60–80 thousand tons

The Metinvest Group is going to increase sales of galvanized rolled products in Ukraine by 20–25% to 200 thousand tons per annum, according to the Metinvest’s press service response to a request from Uaprom.info.

Metinvest expects sales of galvanized rolled products in Ukraine to grow by 40 thousand tons in 2022. The Group notes positive dynamics in demand for metal products, including due to an increase in supplies to manufacturers of polymer-coated rolled products.

“According to our estimates, the demand for galvanized rolled products for the production of polymer-coated rolled products will grow by 60–80 thousand tons in 2022 and will continue to grow until the maximum projected capacity of existing and new coating lines is reached,” Metinvest reported.

The Group expects that the growing demand will drive imported color-coated coil out of the market in favor of domestic one. With the commissioning of new capacities by Metinvest and Metipol, Module and Uterm, the share of Ukrainian polymer-coated rolled products in the market structure will increase due to a drop in supplies, in particular high-quality 20–60 g/m2 zinc-coated rolled products produced in China.

In 2021, Ilyich Iron and Steel Works began the construction of a cold rolling shop including zinc, aluminum-zinc and polymer coating lines. The Group is going to complete the first phase of construction by 2025.

As reported earlier, Metinvest-SMC projected a 4% decline to 297 thousand tons in domestic consumption of galvanized rolled products by the end of 2021 compared to 2020.

According to the Ukrainian Steel Construction Center, consumption of galvanized rolled products in Ukraine in 2020 was 308 thousand tons. Ukraine-made products accounted for 206 thousand tons, imports accounted for 102 thousand tons. Consumption of polymer-coated rolled products amounted to 362 thousand tons, with a share of Ukrainian products accounting for 40 thousand tons, and the share of imports 322 thousand tons.