Ukrainian steelmakers cut rolled steel output by 12.2% m/m in October

Production fell to an annual minimum

In October 2024, Ukrainian steel enterprises reduced rolled steel production by 12.2% compared to the previous month, to 442.2 thousand tons. This is evidenced by the data of Ukrmetalurgprom.

Steel production for the month amounted to 603.8 thousand tons, which is 1% less than in September this year, and pig iron production amounted to 624.9 thousand tons (+0.1% m/m). Compared to October 2023, rolled products production increased by 1.5%, steel production – by 5.7%, and pig iron – by 22.2%.

October’s production of rolled products fell to an annual low, and steel production fell to its lowest level since February 2024. The deterioration in performance is a result of a number of challenges faced by domestic steelmakers, including a deteriorating situation in the country’s power grid, a shortage of staff due to mobilization and an imperfect reservation system, logistical problems and unfavorable conditions in the global steel market.

In January-September 2024, the production of rolled products by Ukrainian steelmakers increased by 20.6% year-on-year – to 5.26 million tonnes, steel – by 25.7% to 6.49 million tonnes, and pig iron – by 21.9%, to 5.98 million tonnes.

As GMK Center reported earlier, in 2023, Ukrainian steelmakers increased rolled steel production by 0.4% compared to 2022, to 5.37 million tons. Pig iron production during the year amounted to 6 million tons, down 6.1% compared to 2022, and steel production amounted to 6.23 million tons (-0.6% y/y).

The domestic steel industry has increased or approached the levels of 2022, where the bulk of production was in pre-war January-February.

Exports of rolled steel products in 2023 amounted to 1.78 million tons, while in 2022 it was 2.47 million, and in 2021 – 8.34 million tons. Imports of the relevant products reached 1.18 million tons last year, 621.6 thousand tons – in 2022, and 1.12 million tons – in 2021.