Zaporizhstal produced 73 thousand tons of rolled steel in January 2023

Zaporizhstal Iron and Steel Works in January 2023 reduced the production of rolled steel by 74% compared to the same month in 2022 – to 73 thousand tons. This is reported in the press release of enterprise.

The volume of pig iron production for the month decreased by 58.5% compared to January 2022 – to 166.4 million tons. The output of steel in January fell by 72.7% y/y – to 89.9 thousand tons.

In comparison with December 2022, in January 2023, steel production increased by 27%, pig iron – by 17.1%, and rolled products – by 28.7%.

“The decrease in the level of production compared to the same period last year is associated with a shortage of raw materials and logistical problems caused by full-scale military operations on the territory of Ukraine. In addition, due to missile attacks on energy infrastructure facilities, a capacity deficit was created in the national energy system, as a result of which the plant reduced production, thus reducing the consumption of purchased electricity,” the company explains.

From the beginning of March 2022, Zaporizhstal was transferred to the hot preservation mode. On March 25, the plant is partially resumed the operation of cold rolling shop units – training machines 1700-1 and 1700-2, as well as slitting unit №5. At the beginning of April, two blast furnaces – №3 and №4 – were put into operation, and later, pig iron smelting began.

After that, the plant announced its intention to launch the blast furnace №3 in August. After the launch of the third blast furnace, the loading capacity of the plant should have reached 75%. But at the end of June 2022, Zaporizhstal was considering the option of reduction of production volume due to significant problems with logistics and the inability to ship products to consumers in Europe. The shelling of the energy infrastructure by the Russian troops were added to the above-mentioned factors.

In 2022, Zaporizhstal reduced pig iron output by 54.3% compared to 2021 – to 2.01 million tons. Steel smelting decreased by 61.7% – to 1.49 million tons, and the production of rolled products – by 60.4%, to 1.304 million tons.