Ukrainian steelmakers reduced capital investment by 68% y/y in 2022

In 2022, Ukrainian steel companies reduced capital investments by 67.8% compared to 2021 – to UAH 7.93 billion from UAH 24.65 billion. This is evidenced data State Statistics Service.

Capital investments in the production of iron, steel and ferroalloys amounted to UAH 5.97 billion in 2022. This is 69.9% less than in 2021. This sector is the main investor in the development of Ukrainian iron and steel sector for the past year, which accounts for 75% of the total capital investment in the industry.

Capital investments in other iron and steel sectors in 2022 amounted to:

• production of pipes, hollow profiles and fittings from steel – UAH 906.6 million (-69.4% compared to 2021);
• production of other primary steel processing products – UAH 387.4 mln (-22.2% y/y);
• production of precious and other non-ferrous metals – UAH 415.6 million. (-60.6% y/y);
• metal casting – UAH 250.7 mln (-20.6% y/y).

Capital investments in the sector «Steel production and production of finished steel products, except for machines and equipment» in 2022 amounted to UAH 10.15 billion, which is 62.8% less compared to 2021.

Mining and metal companies make part of their investments in the mining industry. In 2022, investments in this sector fell by 61.2% to UAH 10 billion.

In general, capital investment in industry in 2022 decreased by 39.2% compared to 2021, to UAH 409.66 billion. The share of iron and steel sector in the total volume of capital investments in the industry for the year amounted to 4.9%.

It should be noted that the dynamics of capital investments in the largest metallurgical companies of the mining and metallurgical complex of Ukraine in 2022 was as follows:

• Metinvest – $354 million (-72.3% y/y);
• Ferrexpo – $161 mln (-55.4% y/y);
• ArcelorMittal – $112.8 million (-63.6% y/y);
• Interpipe – $21 million (-66.7% y/y).

As GMK Center reported earlier, in 2021 the volume capital investment in the industry «Metallurgical production and production of finished metal products» increased by 48% compared to 2020 – up to UAH 25.86 billion. Capital investments in the extractive industry grew by 24.8% to UAH 27.3 billion.