Ukraine: Exports of flat-rolled steel products drop nearly 70% y-o-y in H1CY23

Ukraine's exports of flat steel products fell by 68% y-o-y to 422,500 tonnes (t) during January-June 2023. However, exports of flat products increased by 5.6% m-o-m to 122,930 t in June.

The highest volume of exports were of hot-rolled flat products without coating which stood at 312,300 t in January-June. However, exports decreased by 5.3% m-o-m to 89,100 t in June. Moreover, exports increased by 17.8% m-o-m to 24,300 t in June.

Clad flat-rolled products exports, with galvanic or other coating, amounted to 20,130 t. Moreover, exports increased by 3.7% m-o-m to 9,460 t in June.

The largest consumers of Ukrainian flat hot-rolled rolled steel without coating were Poland and Bulgaria with a share of 57.2% and 13.9%, respectively. The uncoated flat cold-rolled products were mostly sold to Poland (33.4%), Bulgaria (13.9%) and Portugal (10.4%).

In January-June, Ukrainian steelmakers produced 2.37 million tonnes (mnt) of rolled products, down by 41% on y-o-y. Moreover, production fell by 16.4% m-o-m to 393,000 t in June.

Rolled steel production probably fell due to the Russian troops blowing up the Kakhovka hydroelectric power station (HPP) on 6 June, which caused problems with water supply to iron and steel enterprises in the Dnipropetrovsk region. The greatest threat is to steel facilities in Kryvyi Rih.

Thus, ArcelorMittal Kryvyi Rih suspended production of steel and rolled products to reduce water consumption in critical conditions. Only blast furnace and coke-chemical production, as well as mining, will remain in operation. At the same time, the enterprises of Metinvest are working regularly, with the situation under control.

~GMK Center