Ukraine: Steel mills raise production of rolled products by nearly 35% m-o-m in Jul'23

Ukrainian steelmakers raised production of rolled products by 33.6% m-o-m to 525,000 tonnes (t) in July 2023. Pig iron output stood at 538,000 t in July, up 10.7% m-o-m. Steel production for the month was assessed at 601,000 t, an increase of 37.5% m-o-m.

In January-July 2023, production of rolled goods decreased by 31.5% y-o-y to 2.9 million tonnes (mnt). However, production of pig iron decreased by 29.9%, to 3.37 mnt. Steel smelting also declined by 28.8% to 3.43 mnt.

The improvement in production was largely due to the performance of Zaporizhstal, which increased production of rolled products by 48.7% in July compared to 196,100 t a month ago. Pig iron production at Zaporizhstal rose 31.6% in July to 262,000 t, and steel smelting increased 51% to 240,700 t.

The increase in Zaporizhstal's production is linked to the removal of blast furnace No. 2 from hot preservation mode and the adjustment of the operating mode of three blast furnaces.

The improvement in production in July is a positive sign for the Ukrainian steel industry, which has been struggling since the start of the war. However, production levels are still significantly below pre-war levels. The war has had a major impact on the steel industry, and it will take some time for production to return to normal levels.

~GMK Center