Ukraine's flat steel exports plunge over 70% y-o-y in CY22

Ukraine's flat steel exports fell significantly by 73% y-o-y in the past calendar year (CY22), according to official data released by Customs. From a volume of 6.09 million tonnes (mnt) these plunged to 1.6 mnt last year as per an article carried in GMK Center based on the customs data. The decline in exports was the direct impact of the reduction in production due to its war with Russia.

The country's semi-finished steel exports also fell sharply by 77% y-o-y to 1.59 mnt in CY22 compared to 6.78 mnt in the preceding year.

Long products exports plummeted from 1.86 mnt to a mere 748,000 tonnes.
Meanwhile, exports of the key steelmaking raw material, iron ore, dropped by 46% in 2022 to 23.98 mnt against 44.36 mntin 2021.

Pig iron exports were down 59% last year to 1.33 mnt compared to 3.24 mnt in the previous year.

Steel producers in Ukraine incurred serious losses as the two largest steel plants - Azovstal and Ilyich Iron and Steel Works - were destroyed during the war. It may be noted that these two plants account for a major share of 40% in the country's total steel production volumes.

After this event, Zaporizhstal, ArcelorMittal and Kametstal continued to operate and produce steel but due to the supply chain disruptions, power outages and logistical issues, production and exports fell significantly. As per reports, Zaporizhstal's steel-making capacity reduced to 50% in CY22.

Export opportunities largely decreased due to the blockade of Ukrainian seaports. The country was only able to export its steel products to the EU but the potential was limited by the capacity of border railway crossings.

Further, an increase in steel production and exports is only possible at the expense of unblocking sea ports and stablisation of energy supply.