Ukrainian steel makers association Ukrmetallurgprom announced that crude steel output in Ukraine collapsed by 62% in January-July 2022 to 4.82 million tonnes as a result of Russia’s unprovoked invasion of the country that began in late February, while ot metal production dropped by 62% to 4.82 million tonnes& rolled steel output totaled 4.23 million tonnes, down by 62% YoYBesides the impact from the ongoing war, Ukraine's steel production has been affected by the deterioration of the situation in the global steel market, in particular in July. Specifically, by July the support from high global prices, which were caused by disruptions in global supply chains, has dwindled to almost nothing and the positions of Ukrainian steel mills have become more challenging. In particular, Ukrainian steel mills have been forced to handle logistical constraints, coupled with higher logistics-related expenses.The problems of the increase in the cost of production, as well as the logistics of production, have also become acute. Because of it, companies began to massively announce load reductions or shutdowns due to accumulated problems that the authorities are in no hurry to solve together with business.
Ukrainian steel makers association Ukrmetallurgprom announced that crude steel output in Ukraine collapsed by 62% in January-July 2022 to 4.82 million tonnes as a result of Russia’s unprovoked invasion of the country that began in late February, while ot metal production dropped by 62% to 4.82 million tonnes& rolled steel output totaled 4.23 million tonnes, down by 62% YoYBesides the impact from the ongoing war, Ukraine's steel production has been affected by the deterioration of the situation in the global steel market, in particular in July. Specifically, by July the support from high global prices, which were caused by disruptions in global supply chains, has dwindled to almost nothing and the positions of Ukrainian steel mills have become more challenging. In particular, Ukrainian steel mills have been forced to handle logistical constraints, coupled with higher logistics-related expenses.The problems of the increase in the cost of production, as well as the logistics of production, have also become acute. Because of it, companies began to massively announce load reductions or shutdowns due to accumulated problems that the authorities are in no hurry to solve together with business.
