Ukraine in August reduced the export of pig iron to a minimum since April 2022

Ukrainian steel companies in August 2023 reduced the export of pig iron by 74% compared to the previous month – to 27.8 thousand tons. In monetary terms, supplies of pig iron abroad during this period fell by 75.1% m/m – to $9.41 million. This is evidenced by State Customs Service.

Compared to August 2022, in August 2023, pig iron exports in volume terms decreased by 72.3%, and in monetary terms – by 81.8%.

Thus, pig iron exports fell to their lowest level since April 2022, when steel mills almost completely suspended production due to the Russian invasion of Ukraine. The drop in exports is likely due to unfavorable conditions on the EU market, the main export market for the Ukrainian steel industry. Shutdowns of steel enterprises in the EU amid weak demand for steel reduced the consumption of Ukrainian-made pig iron.

In January-August 2023, Ukraine exported 934.2 thousand tons of pig iron worth $356.3 million. Export volumes increased by 6.5% compared to the same period in 2022, and revenue decreased by 25.1%.

The main consumer of Ukrainian pig iron in January-August 2023 was Poland (63.1%). Spain’s share in total exports was 20.7%. The Czech Republic is in the third place – 7%. Before the war, more than half of the pig iron exported from Ukraine was consumed by the United States.

In August 2023, Ukrainian steelmakers reduced iron production by 0.7% compared to the previous month – to 534 thousand tons. Although the figure decreased slightly compared to July, production remained at the highest level since the beginning of the war for the second month in a row.

As GMK Center reported earlier, in 2022, Ukrainian steel companies reduced pig iron exports by 59% compared to 2021 – to 1.32 million tons. The income of steelmakers from the export of pig iron over the past year amounted to $638.8 million, which is 61.1% less than in 2021. The main consumer of raw materials was the USA – 38.47% of total exports.