One of the reasons is the decrease in cargo acceptance by U.S. Steel Kosice

In July 2023, Slovakian railway carrier ZSSK Cargo recorded a 25% m/m decrease in cargo flow from Ukraine to Slovakia – to 254,000 tons. Such data were announced by the general representative of ZSSK Cargo during a meeting of railway workers of the two countries Joseph Wirba, informs Rail.Insider.

According to him, one of the reasons was a decrease in cargo acceptance by the US Steel Kosice steel plant, where one of the three blast furnaces was being repaired. The Czech steel enterprise Liberty Ostrava also demonstrated a significant reduction in cargo acceptance, fulfilling the plan by only 43%.

Wirba predicts that the recession in the European steel industry will gather momentum and will last until at least the end of September or probably until the end of autumn.

As of the beginning of August 2023, about 3.6 thousand railcars with cargo from iron and steel enterprises of Ukraine were on the approaches to border railway crossings. 2.59 thousand units of railcars with iron ore were heading towards the European Union, 1 thousand units – with steel products. In total, there were 7.61 thousand railcars on the approaches. 1.78 thousand units and 22 units railcars went to Slovakia with iron ore and steel products, respectively.

As GMK Center reported earlier, Ukrainian Railways in June decreased export transportation of ferrous metals by 20% m/m. Railway transportation of iron ore for export increased by 3.8% m/m. In January-June 2023, UZ reduced the export transportation of ferrous metals by 62.2% y/y – to 2.32 million tons. In January-June, UZ shipped 8.67 million tons of iron ore for export, which is 44.7% less than in the same period of 2022.