Ukrainian steelmakers increased rolled steel output by 7.9% m/m in November

In November 2024, Ukrainian steel enterprises increased rolled steel production by 7.9% compared to the previous month to 477 thousand tons. Production volumes recovered slightly after reaching an annual low in October, according to Ukrmetallurgprom.

Steel production for the month amounted to 540.8 thousand tons, down 10.4% compared to October this year, and pig iron production amounted to 542.9 thousand tons (-13.1% m/m). Compared to November 2023, rolled products production fell by 4.4%, steel production fell by 1.2%, and pig iron production increased by 0.3%.

November’s production figures for Ukraine’s steel industry reflect negative sentiment on the global steel market and internal pressures, including the country’s weak power grid, rising energy and logistics costs, lack of skilled workers, etc. While rolled steel production showed a slight recovery month-on-month, steel and pig iron production dropped significantly to their lowest levels since the beginning of the year. Production volumes are also lower compared to the same month in 2023, which is the first time since the beginning of the year for steel and pig iron and the second time for rolled products. The combination of these factors indicates a more challenging outlook for the industry and the need to maintain competitiveness by reducing logistics and energy costs.

In January-November 2024, the production of rolled products by Ukrainian steelmakers increased by 18% compared to the same period in 2023 to 5.74 million tons, steel by 23.1% – to 7.03 million tons, and pig iron by 19.8% – to 6.52 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.