Ukrainian steel association Ukrmetallurgprom says that 6 steel enterprises are currently operating in Ukraine, with average capacity utilization of about 15% of the pre-war level. Ukrmetallurgprom President Mr Oleksandr Kalenkov said This situation is a direct consequence of Russia's military aggression against Ukraine, due to which the industry lost the capacity of two Mariupol plants, which were responsible for 40% of production. Access was also lost to sea ports, which facilitated a significant portion of exports. As a result, in the eight months through August, steel production in Ukraine fell to 5.2 million tonnes, while in 2021 it was almost 13 million tonnes during the same period. Taking into account the current level, by the end of 2022 we can produce 6.5-7 million tonnes `of steel products compared to more than 21 million tonnes last year, and it will be a good result under the current conditions.” According to Mr Kalenkov “Logistics problems is one of the main factors that continue to significantly limit steel production in Ukraine. Due to the loss of access to the Black Sea, steelmakers are forced to export products, up to 80% of which were previously sold on foreign markets, by rail across western borders. However, this increases logistics costs by 2-3 times. In addition, railway connections with European countries cannot provide the necessary export rates for Ukraine. Cars have been waiting for tens of days for their turn to cross the border.” Mr Kalenkov observes that “The production costs of Ukrainian enterprises are growing against the background of lower prices for steel products on world markets. Steel prices have fallen by 30% and iron ore by 35% over the past few months.” He added “The situation at mining enterprises looks a little better, as they are 25% loaded on average. However, work has been suspended at the Inguletskyi, Yuzhnoye, and also at ArcelorMittal Kryvyi Rih miner enterprises.”
Ukrainian steel association Ukrmetallurgprom says that 6 steel enterprises are currently operating in Ukraine, with average capacity utilization of about 15% of the pre-war level. Ukrmetallurgprom President Mr Oleksandr Kalenkov said This situation is a direct consequence of Russia's military aggression against Ukraine, due to which the industry lost the capacity of two Mariupol plants, which were responsible for 40% of production. Access was also lost to sea ports, which facilitated a significant portion of exports. As a result, in the eight months through August, steel production in Ukraine fell to 5.2 million tonnes, while in 2021 it was almost 13 million tonnes during the same period. Taking into account the current level, by the end of 2022 we can produce 6.5-7 million tonnes `of steel products compared to more than 21 million tonnes last year, and it will be a good result under the current conditions.” According to Mr Kalenkov “Logistics problems is one of the main factors that continue to significantly limit steel production in Ukraine. Due to the loss of access to the Black Sea, steelmakers are forced to export products, up to 80% of which were previously sold on foreign markets, by rail across western borders. However, this increases logistics costs by 2-3 times. In addition, railway connections with European countries cannot provide the necessary export rates for Ukraine. Cars have been waiting for tens of days for their turn to cross the border.” Mr Kalenkov observes that “The production costs of Ukrainian enterprises are growing against the background of lower prices for steel products on world markets. Steel prices have fallen by 30% and iron ore by 35% over the past few months.” He added “The situation at mining enterprises looks a little better, as they are 25% loaded on average. However, work has been suspended at the Inguletskyi, Yuzhnoye, and also at ArcelorMittal Kryvyi Rih miner enterprises.”
