Ukrainian steelmakers increased capital investments by 48% y/y

In 2021, Ukrainian steel companies increased capital investments by 48.% compared to 2020 – up to UAH 25.86 billion. This is evidenced by State Statistics Service’s data.

Capital investments in the production of pig iron, steel and ferroalloys amounted to UAH 20.9 billion in 2021. This is 31.6% more compared to 2020. This sector is the main investor in the development of Ukrainian iron and steel sector for the past year, which accounts for 80.8% of the total indicator of capital investment in the industry.

Capital investments in other iron and steel sectors in 2021 amounted to:

• production of steel pipes, hollow profiles and steel fittings – 2.96 billion UAH (6.6 times more by 2020);
• production of other products of primary steel processing – UAH 620.8 million (2.05 times more y/y);
• production of precious and other non-ferrous metals – UAH 1.05 billion (+66.2% y/y);
• steel casting – UAH 315.69 million (+58.2% y/y).

Capital investments in the sector of “Steel production and production of finished steel products, except for machines and equipment” in 2021 reached UAH 28.46 billion, which is 42.5% more compared to 2020.

Mining and metal companies make part of their investments in the mining industry. In 2021, investments in this sector increased by 24.8% – to UAH 27.3 billion.

In general, capital investments in industry in 2021  increased by 34.6% compared to 2020 – up to UAH 536.34 billion. The share of iron and steel sector in the total volume of capital investments in industry for the year was 9.92%.

As GMK Center reported earlier, in 2020, according to the State Statistics Service, the volume of capital investments in the sector of “Steel production and production of finished steel products” decreased by 52.6% compared to 2019 – to UAH 18.8 billion. Capital investments in the mining industry fell by 53% – to UAH 44.8 billion.

In 2021, the iron and steel companys of Ukraine planned to increase investments. In particular, Metinvest planned to increase capital expenditures by 20-30% – up to $800-850 million.