The steel industry is witnessing a deceleration in market activity, as reported by Ukraine's Dneprovskiy Steel Mill (DMZ), part of the DCH Group. The company has noted a downturn in the steel market, which is reflected in the production numbers. While there was an increase in rolled steel production in April, with a surge of 87.2% year-on-year and 74% month-on-month, reaching 10,800 tonnes, the coke output experienced a slight decline.
This pattern of fluctuating production continued into May, where DMZ saw a decrease in rolled steel production by 27.3% month-on-month, amounting to 7,900 tonnes. However, this was still a 7% increase on a year-on-year basis. The first five months of the year cumulatively showed a 29% increase in output, totaling 30,000 tonnes.
The contrasting trends of rising steel production and falling coke output highlight the challenges faced by the industry in maintaining consistent production levels. The slowdown in market activity has prompted DMZ to adapt its operations accordingly, as it navigates through the complexities of supply and demand in the current economic climate.
The industry's focus is now on strategic planning and efficiency improvements to counteract the effects of the market slowdown and ensure sustainable production in the long term.