Ukrainian steelmakers increased rolled steel output by 9.3% m/m in March

In March 2024, Ukrainian steel enterprises increased rolled steel production by 9.3% compared to the previous month, to 488.7 thousand tons. This is evidenced by the data of Ukrmetalurgprom.

Steel production for the month amounted to 610.9 thousand tons, up 14.9% compared to February 2024, and pig iron production was 538.2 thousand tons (+8.6% m/m). Steel production in March reached its highest level since the start of the full-scale invasion.

Compared to March 2023, rolled steel production increased by 12.1%, steel production by 15.8%, and pig iron – by 15.7% in March 2024.

In January-March 2024, the production of rolled products by Ukrainian steelmakers increased by 35.5% compared to the same period in 2023 – to 1.39 million tons, steel production – by 36.6%, to 1.69 million tons, and pig iron production – by 32.1%, to 1.59 million tons. The sharp quarter-on-quarter growth is the result of a low comparison base, as the first quarter of 2023 was difficult for Ukraine’s steel industry due to Russian shelling of the country’s energy infrastructure.

In the second quarter, the industry’s performance is likely to slow down as steelmakers resumed production in April-July 2023 after the low levels of January-March. At the same time, the opening of a sea corridor for iron and steel cargo will help boost the industry’s performance this year.

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 adjusting 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.