Zaporizhstal reduced the production of rolled steel by half in June

In June 2022, Zaporizhstal Iron and Steel Works reduced the production of rolled steel by 50.2% compared to June 2021, to 146.9 thousand tons, the company’s press release reads.

Pig iron production in June decreased by 43.1% compared to June last year, to 146.9 thousand tons. Steel output fell by 21.2%, to 69.6 thousand tons.

From January to June 2022, Zaporizhstal total output decreased by 49.6% compared to the same period last year, to 2.89 million tons. In particular, the following were produced:

• cast iron – 1.13 million tons (-51.9% compared to January-June 2021);
• steel – 922.3 thousand tons (-46.4%);
• rolled products – 839.4 thousand tons (-53.4%).

“Production decrease compared to the same period last year is related to the shortage of raw materials and logistical problems caused by full-scale military operations on the territory of Ukraine,” the company explained.

At the beginning of March, Zaporizhstal turned to the hot reservation mode. On March 25, the plant partly resumed the operation of the units of the cold rolling shop (rolling mills 1700-1 and 1700-2, as well as longitudinal cutting unit №5. At the beginning of April, two blast furnaces – №3 and №4 – were restarted, and later – pig iron smelting.

After that, the plant announced plans to restart blast furnace №3 in August. After this, the plant’s capacity utilization may reach 75%. But at the end of June Zaporizhstal revealed they are considering the reducing of production instead due to significant problems with logistics and the incapability to ship products to consumers in Europe.

In 2021, Zaporizhstal increased the output of pig iron by 0.1% compared to 2020, to 4.5 million tons. Steel production decreased by 0.1%, to 3.8 million tons, and the production of rolled products remained at the level the previous year – 3.2 million tons. In January-February 2022, the plant reduced the production of rolled steel by 8.7% compared to the same period in 2021, to 502.4 thousand tons.