In June this year, Ukrainian steel output showed a decrease for the second month in a row, mainly being affected by the downward correction of prices in steel markets caused by the unfavorable world market conditions.
Of the seven largest Ukrainian steel producers the biggest month-on-month crude steel output drops were registered in June by Alchevsk Iron and Steel Works (Alchevsk) (down about 42 percent) and Dneprovsky Iron and Steel Works named after F. Dzerzhinsky (DMKD) (down 47 percent), both subsidiaries of Ukrainian steel producer Industrial Union of Donbass (ISD), for which the unfavorable world market conditions have been aggravated by problems with the supply of raw materials and natural gas. Due to insufficient funds for the purchase of iron ore, ISD's plants reduced their pig iron production while, due to large debts, gas deliveries to DMKD were stopped for about ten days.
Meanwhile, the country's top three mills, namely Metinvest's subsidiary Azovstal, Ilyich Iron and Steel Works of Mariupol (Ilyich) and ArcelorMittal Kriviy Rih led the H1 2010 steel sector recovery adding 53 percent, 41 percent and 34 percent year on year in output respectively, partly on the back of the low base effect.
In H1 2010, ArcelorMittal Kriviy Rih produced about 2.633 million mt of finished steel - up 23.8 percent, 3.066 million mt of crude steel - up 34 percent, about 2.664 million mt of pig iron - up 31 percent, 4.756 million mt of agglomerate - up 28.5 percent, 1.314 million mt of coke - up 7.9 percent, 4.315 million mt of iron ore concentrate - up 40.6 percent, and 619,000 mt of iron ore - down 5.7 percent, all compared to the same period of 2009.
During the first six months of the current year, Azovstal increased its crude steel output by 52.6 percent to 2.872 million mt, saw its pig iron production rise by 53 percent to 2.464 million mt and its finished steel production increase by 52.2 percent to 2.678 million mt, all compared to the corresponding period of 2009. Meanwhile, Azovstal's metallurgical coke output registered an increase of 12.7 percent year on year to 1.044 million mt.
In January-June this year, Ilyich increased its finished steel product output by 36.2 percent to 1.822 million mt, its crude steel production went up by 41.5 percent to 2.684 million mt, its pig iron output rose by 41.4 percent to 2.275 million mt, and its agglomerate production increased by 49.7 percent to 5.391 million mt, all compared to January-June 2009.
In the first six months of 2010, Zaporizhstal's finished steel production increased by 1.5 percent and its crude steel production went up by 3.1 percent year on year, to 1.363 million mt and 1.645 million mt respectively. Zaporizhstal's agglomerate production went up by 1.3 percent, while its pig iron production increased by 3.3 percent year on year. The respective figures in metric tons were 2.417 million and 1.375 million mt.
During the period in question, Alchevsk saw its pig iron production fall by 9.6 percent, its finished steel production decline by 6.7 percent, its crude steel production went down by 8.1 percent, while its agglomerate production increased by 6.2 percent year on year. The respective figures in metric tons were 1.446 million, 1.527 million, 1.625 million and 2.262 million.
During the period in question, Dneprovsky Iron and Steel Works named after F. Dzerzhinsky saw its crude steel production drop by 17.4 percent year on year to 1.447 million mt and saw a fall of 14.2 percent year on year in its pig iron production to 1.409 million mt. The plant also saw its output of finished steel decline by 17.4 percent to 1.369 million mt, and its agglomerate production drop by 7.5 percent to 2.221 million mt, both compared to H1 2009.
In January-June this year, Yenakievo Iron and Steel Works' pig iron production rose by 7.1 percent to 1.09 million mt, and its finished steel output climbed up 11.9 percent to about 1.227 million mt, both compared with the same period last year. Meanwhile, the plant's crude steel production went up by 9.3 percent year on year to 1.264 million mt, but its agglomerate production decreased by 12.8 percent year on year to 895,000 mt.