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You're reading: Ukraine cuts steel output 5% in 8 months

Ukrainian crude steel production fell 5% year-on-year in January-August to 22.01 million tonnes. 

Roll production fell 7% to 19.681 million tonnes and pig iron production was flat at 19.083 million tonnes, Vasily Kharakhulakh, general director of the Metallurgprom association, said at a conference on Wednesday.

Steel mills received 376,000 tonnes of scrap or 84% of their requirement in August, and 3.322 million tonnes or 85% in the 8M. Scrap metal stockpiles fell 20,000 tonnes during August to 130,000 tonnes.

As of September 1, 26 of the country’s 36 blast furnaces, 12 of 16 open-hearth furnaces and seven of 15 electric furnaces were operating. Average daily pig iron output in the first ten days of September was 75,300 tonnes, crude steel – 85,600 tonnes and roll – 68,800 tonnes.

Ukraine plans to produce 2.64 million tonnes of crude steel, 2.37 million tonnes of roll and 2.3 million tonnes of pig iron in September as a whole, and 2.59 million tonnes, 2.37 million tonnes and 2.34 million tonnes in October.

Steel mills will require 575,000 tonnes of sinter ore, 1.44 million tonnes of iron ore concentrate, 310,000 tonnes of sinter, 760,000 tonnes of pellets, 925,000 tonnes of limestone, 1.21 million tonnes of coke and 470,000 of scrap to achieve the October targets.

Kharakhulakh said he thought Ukraine would produce roughly as much steel as last year in 2012 because there were no signs of growth in the markets. “We shouldn’t expect significant changes in the steel market before the end of the year. There has been some price growth for long products and a drop for flat products, but no real fluctuations,” he said.

Ukraine raised both steel and pig iron output 6% in 2011 to 34.689 million tonnes and 28.879 million tonnes, respectively.

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