Ukrainian steelmakers cut rolled steel output by 14.5% m/m in September

In September 2024, Ukrainian steel enterprises reduced production of rolled steel products by 14.5% compared to the previous month, to 503.9 thousand tons. This is evidenced by data from Ukrmetalurgprom.

Steel production for the month amounted to 610 thousand tons, down 11.7% compared to August this year, and pig iron production amounted to 624.1 thousand tons (-3% m/m).

The monthly production rate of steelmakers has slowed significantly as domestic enterprises face a number of challenges, including a deteriorating situation in the country’s power grid, a shortage of staff due to mobilization and an imperfect booking system, logistical problems and unfavorable conditions in the global steel market.

Compared to September 2023, in September this year, rolled steel production decreased by 3%, steel production increased by 9.3%, and pig iron production increased by 28.3%.

In January-September 2024, Ukrainian steelmakers increased their rolled products output by 22.7% year-on-year – to 4.82 million tonnes, steel production – by 28.2%, to 5.88 million tonnes, and pig iron production – by 21.9%, to 5.36 million tonnes.

In the third quarter of 2024, pig iron production amounted to 1.89 million tons, up 0.6% quarter-on-quarter and 21.3% y/y. Steel output for the period fell by 8.1% q/q and increased by 14.1% y/y – to 2.01 million tons, while rolled products decreased by 3.9% q/q and increased by 8.2% y/y – to 1.68 million tons.

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.