Ukrainian steelmakers cut pig iron exports by 30% m/m in August 2022

In August 2022, Ukrainian steel companies reduced pig iron exports by 29.9% compared to the previous month – to 100.4 thousand tons. In monetary terms, pig iron deliveries abroad during this period decreased by 41.4% m/m – to $51.7 million. This is evidenced by the State Customs Service’s data.

In August 2022, pig iron deliveries abroad fell by 71.4% in physical terms and by 74.4% in monetary terms year-on-year.

In January-August 2022, Ukraine exported 877.6 thousand tons of pig iron. This is 59.6% less compared to the same period in 2021. The steelmakers’ revenue from exports amounted to $475.5 million, which is 57.8% less than in January-August 2021.

The main consumer of Ukrainian pig iron in January-August 2022 was the USA (40.4%). The share of Poland in the total pig iron exports was 33.2%. Italy was in the third place – 9.3%. Before the war, the USA consumed more than half of the pig iron exported from Ukraine.

In January-August 2022, steel enterprises of Ukraine reduced pig iron production by 64% compared to the same period last year – to 5.15 million tons. In August 2022, Ukrainian steelmakers produced 335 thousand tons of pig iron.

Production of iron&steel products in August 2022 decreased, in particular, due to the deterioration of the situation on the global market. Rising prices driven by disruptions in supply chains allowed domestic exporters to offset some of the losses associated with increased spending due to the war.

The problem of the increase in the cost of production and logistics, has also become acute. Because of this, companies began to massively announce load reductions or shutdowns due to accumulated problems that the authorities are in no hurry to solve together with business.

As GMK Center reported earlier, in 2021 pig iron exports from Ukraine increased by 4% compared to 2020 – up to 3.24 million tons. In monetary terms, pig iron deliveries abroad in 2021 increased by 78.1% y/y – up to $1.64 billion.

In 2021, Ukraine sold more than half of its pig iron to the USA (53.6%). In 2021, Italy was in the second place by the supplies of Ukrainian pig iron (22.1%), and Turkey was in the third place (9.7%).