Ukraine’s crude steel output drops for third month in a row in July

Wednesday, 11 August 2010 13:25:51 (GMT+2)

In July this year, Ukrainian crude steel output showed a decrease for the third month in a row, with steelmakers producing 2.42 million mt, down from 2.45 million mt in June, and with daily average output decreasing four percent month on month to 78,100 mt.

Of the seven largest Ukrainian steel producers the biggest month-on-month crude steel output drops were registered in July by Metinvest's subsidiary Azovstal, which scaled back its output by 12.7 percent due to unscheduled repairs of its main production units, and by ISD's subsidiary Alchevsk Iron and Steel Works (Alchevsk), which saw an 11 percent drop in crude steel output compared to June, due to a lack of working capital which led to problems with raw material supplies.

Ukraine's  best performing plants in July 2010 were ISD's DMDK, Ilyich Iron and Steel Works of Mariupol (Ilyich) and Metinvest's Yenakievo Iron and Steel Works, which boosted crude steel production by 8.0, 7.7 and 4.6 percent month on month, respectively. 

According to Astrum Investment Management, during the last three months, the average capacity utilization level of ISD's subsidiaries Alchevsk and  Dneprovsky Iron and Steel Works named after F. Dzerzhinsky (DMKD) was only 30-40 percent, whereas, for example, the capacity utilization level at Metinvest's subsidiaries Azovstal and  Yenakievo Iron and Steel Works was 75-85 percent.

In the first seven months of the current year Ukraine registered a 13 percent rise in its crude steel output to 18.764 million mt.

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