Starting from February this year, Ukrainian steel output steadily increased on a month-on-month basis; however, in May the country saw its crude steel output decrease by 4.4 percent month on month to 2.84 million mt.
Of the seven largest Ukrainian steel producers the biggest month-on-month crude steel output drops were registered in May by Alchevsk Iron and Steel Works (Alchevsk) (down 23 percent) and Dneprovsky Iron and Steel Works named after F. Dzerzhinsky (DMKD) (down 20.6 percent), both subsidiaries of Ukrainian steel producer Industrial Union of Donbass (ISD), and by Ilyich Iron and Steel Works of Mariupol (Ilyich) (down 17.4 percent). The decreases were due to the lack of funds for the purchase of raw materials, lower demand for commercial semis and finished products in foreign markets, as well as due to the decrease in world steel prices.
Difficulties with products sales mostly affected the steelmakers which do not have their own raw material resources. The local market prices for coke and iron ore have remained virtually at April levels, which, when combined with weaker steel pricing, forced non-integrated mills (mainly Ilyich, Alchevsk, and DMKD) to reject some new orders. Meanwhile, some integrated steel producers even increased their steel output, such as Metinvest's subsidiary Azovstal, which saw a seven percent growth month on month in its crude steel output.
In January-May 2010, ArcelorMittal Kriviy Rih produced about 2.224 million mt of finished steel - up 25.5 percent, 2.581 million mt of crude steel - up 36.8 percent, 2.243 million mt of pig iron - up 33.2 percent, 4.045 million mt of agglomerate - up 32 percent, 1.102 million mt of coke - up 8.8 percent, 3.594 million mt of iron ore concentrate - up 43.7 percent, and 516,000 mt of iron ore - down 8.5 percent, all compared to the same period of 2009.
During the first five months of the current year, Azovstal increased its crude steel output by 56.8 percent to 2.387 million mt, saw its pig iron production rise by 56.3 percent to 2.041 million mt and its finished steel production increase by 57.7 percent to 2.236 million mt, all compared to the corresponding period of 2009. Meanwhile, Azovstal's metallurgical coke output registered an increase of 12.5 percent year on year to 865,600 mt.
In January-May this year, Ilyich increased its finished steel product output by 46.1 percent and its pipe production by 5.7 times year on year, to 1.594 million mt and 59,500 mt respectively. Ilyich's crude steel production went up by 48.8 percent, its pig iron output rose by 47 percent and its agglomerate production increased by 52.8 percent, year on year. The respective figures in metric tons were 2.294 million, 1.928 million and 4.554 million.
During the period in question, Dneprovsky Iron and Steel Works named after F. Dzerzhinsky saw its crude steel production drop by 8.6 percent year on year to 1.323 million mt and saw a fall of 6.2 percent year on year in its pig iron production to 1.272 million mt. The plant also saw its output of finished steel decline by nine percent to 1.261 million mt, but saw its agglomerate production rise by 0.8 percent to 1.982 million mt, both compared to January-May 2009.
In the first five months of 2010, Zaporizhstal's finished steel production increased by 0.14 percent and its crude steel production went up by 1.4 percent year on year, to 1.121 million mt and 1.355 million mt respectively. Zaporizhstal's agglomerate production went down by 0.75 percent, while its pig iron production increased by 2.1 percent year on year. The respective figures in metric tons were 1.982 million and 1.141 million mt.
During the period in question, Alchevsk saw its pig iron production fall by 3.9 percent, its finished steel production decline by three percent, its crude steel production went down by 1.5 percent, while its agglomerate production increased by 10.8 percent year on year. The respective figures in metric tons were 1.3 million, 1.362 million, 1.471 million and 1.98 million.
In January-May this year, Yenakievo Iron and Steel Works' pig iron production rose by 1.6 percent to 906,200 mt, and its finished steel output climbed up four percent to 1.016 million mt, both compared with the same period last year. Meanwhile, the plant's crude steel production went up by 1.8 percent year on year to 1.049 million mt, but its agglomerate production decreased by 15.7 percent year on year to 748,000 mt.