Ukrainian steelmakers cut steel production by 9.1% in March

Production of rolled products dropped by 7.9%

According to Ukrmetallurgprom, Ukrainian metals and mining companies cut steel production in March by 9.1% to 1.789 million tons compared to the same period of the previous year.

Production of pig iron in March declined by 4.6% to 1.750 million tons, rolled products — by 7.9% to 1.560 million tons.

“If we compare March 2019 and March 2020, it is clear that all indicators worsened. Say, steel production decreased by 9.1%. Yet March 2019 was the best month in terms of production since at least 2017. In other words, a comparative benchmark is high. Capacity utilization in March this year corresponds to the average for the past year and is slightly worse than in January–February. Therefore, these indicators are high enough, given the situation in the sector after mid-month. Expectations are nevertheless extremely negative. Current production results rely on January–February sales. The crisis will become apparent in full in April–May,” explains Andrii Tarasenko, GMK Center Chief Analyst.

In Q1 2020, Ukraine’s mining & metals sector increased production in three segments: rolled products grew by 3.5% to 4.7 million tons, steel production by 3% to 5.342 million tons, and pig iron by 2% to 5.105 million tons compared to the same period of 2019.

As reported earlier, in January–February, Ukrainian mining & metals companies increased steel production by 0.4% to 3.553 million tons compared to the same period of the previous year. Production of pig iron grew by 4.6% to 3.140 million tons, whereas production of rolled products decreased by 0.7% to 3.36 million tons.

In 2019, Ukrainian mining & metals companies reduced steel production by 1.2% to 20.85 million tons. Production of pig iron fell by 2% to 20.6 million tons, and rolled products by 0.9% to 18.2 million tons against 2018.