Ukrainian steelmakers cut rolled steel production by 10.9% m/m in January

Steel production increased by 4.5% m/m, while pig iron production decreased by 0.3% m/m

In January 2024, Ukrainian steel enterprises reduced rolled steel production by 10.9% compared to December 2023, to 453 thousand tons. This is evidenced by data from Ukrmetalurgprom.

Steel production for the month amounted to 544 thousand tons, up 4.5% month-on-month, and pig iron production amounted to 555 thousand tons (-0.3% m/m).

Compared to January 2023, the production of rolled products increased by 76.3%, steel – by 91.5%, and pig iron – by 44.5%. The sharp year-on-year growth reflects a low comparison base, as at the beginning of last year, domestic steelmakers were adjusting to the suspension of production due to limited energy supply as a result of Russian shelling of Ukraine’s critical energy infrastructure.

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. Companies are gradually adapting to doing business, but limited logistics capabilities still have a negative impact on performance.

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.