Ukrainian steel producers reduce production

Ukrainian steel producers reduce production

Reports from Ukraine refer to a production halt at the Ukrainian steel mill Makeevka. According to the mill, this halt is due to some investment projects the company is working on, however industry experts comment that it could well be in direct relation to a major loss and working capital issues. There are also reports regarding a production halt at the Donetsk Iron and Seel Works (DMZ) of Ukraine, due to unconfirmed reasons. A similar situation could be valid for this mill as well. Another Ukrainian mill that reduced production is Enakievo Steel. It is reported that the currency rate adjustments of Hyrvnia had their impact on all the production costs of these mills, putting them under pressure. Furthermore, the reduced production levels by all these Ukrainian mills will lead to an increase of scrap supply in the market as a result of lowered consumption and demand, putting further pressure on prices.