The consumption of galvanized rolled steel in Ukraine in 2022 fell by 44% y/y

The volume of galvanized rolled steel consumption in Ukraine in 2022 decreased by 44% y/y – to 172 thousand tons (in 2021 – 308 thousand tons). At the same time, domestic production of rolled steel with galvanized coating decreased by 74% y/y last year – to 127 thousand tons (in 2021 – 493 thousand tons).

Denys Yarko, director of sales in the metalworking sector Metinvest-SMC, said about it during the open meeting of the Committee on roofing, facade structures and light steel thin-walled structures of the association «Ukrainian Center of Steel Construction».

The key reasons for the decline in the market are the consequences of the war in Ukraine and the fall in domestic demand due to the suspension of most commercial projects and residential construction. In addition, as a result of the hostilities, the production of galvanized steel at Ilyich Iron and Steel Works was stopped, and at the Unisteel and Modul-Ukraine plants production decreased due to interruptions in the supply of electricity.

According to Denys Yarko, the export of rolled products with galvanized coating from Ukraine fell by 85% y/y last year – to 42 thousand tons (in 2021 – 277 thousand tons). Imports of galvanized steel in 2022 increased by 27% y/y – up to 84 thousand tons.

As GMK Center reported earlier, the production of rolled steel from polymer coating in the third quarter of 2021 increased by 22% compared to the third quarter of 2020 – to 23 thousand tons. The consumption of rolled products with a polymer coating in the third quarter of 2021 increased by 6% compared to the previous quarter – up to 139 thousand tons. 90% of the total volume was imported.