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Steel & Metal
- Ukraine -

Ukrainian Steelmakers Ramp Up Rolled Steel Output by 20% in April

In April 2024, Ukrainian steel enterprises increased rolled steel production by 19.6% compared to the previous month, to 584.3 thousand tons, according to data from Ukrmetalurgprom.

Steel production for the month amounted to 714.7 thousand tons, up 17% compared to March 2024, and pig iron production amounted to 596.9 thousand tons (+10.9% m/m).

Steel and rolled products production in April reached its highest level since the start of the full-scale invasion, indicating that steelmakers are ramping up their capacity as planned. Compared to April 2023, rolled steel production increased by 19.9%, steel production by 24.5%, and pig iron production – by 9.7% in April 2024.

In January-April 2024, the production of rolled products by Ukrainian steelmakers increased by 30.5% compared to the same period in 2023 – to 1.97 million tons, steel production – by 32.8%, to 2.4 million tons, and pig iron production – by 25.1%, to 2.19 million tons. The sharp year-on-year increase is the result of a low comparison base due to the difficulties for the industry in the first quarter of 2023 caused by the shelling of Ukraine's energy infrastructure by Russian troops.

At the same time, the results have been gradually improving since April last year. In the second quarter, the industry's performance is likely to slow down as steelmakers resumed production in April-July 2023 after the low levels of January-March. At the same time, the opening of the sea corridor for iron and steel cargo will help to increase the industry's production performance this year.

In 2023, Ukrainian steelmakers increased rolled steel production by 0.4% compared to 2022, to 5.37 million tons.1 Pig iron production during the year amounted to 6 million tons, down 6.1% compared to 2022, and steel production amounted to 6.23 million tons (-0.6% y/y).

The domestic steel industry has increased or approached the levels of 2022, where the bulk of production was in pre-war January-February. Companies are gradually adapting to doing business, but limited logistics capabilities still have a negative impact on performance.

Exports of rolled steel products in 2023 amounted to 1.78 million tons, while in 2022 it was 2.47 million, and in 2021 – 8.34 million tons. Imports of the relevant products reached 1.18 million tons last year, 621.6 thousand tons – in 2022, and 1.12 million tons – in 2021.

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