Ukrainian crude steel output further declines in March

5 April 2017

In March 2017 total Ukrainian steel output made 1.783M tons, which has been slightly higher vs. previous month, but by 18% lower y-o-y.

We note that despite the growth vs. February (due to larger number of days in the month), average daily output declined.

Main factors of output decline were transport blockade of territory non-controlled by Ukrainian government and loss of control by Ukrainian groups of enterprises situated at the non-controlled territory (these factors led to loss of Alchevsk and Enakieve steel mills production and significant decrease of output by DMK (Kamyanske)), as well as continuing shelling of Avdeevka, which result in disruptions of the largest European coke producer (Avdeevka Coke Plant) operations and put downward pressure on two steel mills situated in Mariupol production volumes.

As a result, out of all Ukrainian steel mills more or less stable activity is demonstrated only by Arcelor Mittal Kryvyi Rig and Zaporizhstal.

In total in the first quarter of current year volume of Ukrainian steel mills output made 5.596M tons, which is by 8% lower vs. Q1 2016.

Positive news is steel pipes production dynamics. In March 2017 their total output made about 83k tons, which is approximately at the level of February but by 10% higher y-o-y.

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