Ukrainian steel producers have in February been maintaining their rising steel product output trend of December and January due to the continuing revival of demand from the world steel markets, especially from China and India. Most Ukrainian steelmakers have already emptied their stocks of old inventories, and now report normal levels of finished products in their warehouses.
According to the Ukrainian association of metal producers Metallurgprom, the average daily steel output has risen to about 70 percent of last year's level. Over the first 11 days of February 2009, Ukrainian steelmakers have increased their average daily output of pig iron to 70,300 mt, up 17 percent compared to January and 31 percent compared to December 2008. Meanwhile, the average daily output of crude steel at the beginning of February has increased to 83,400 mt, up 21.7 percent compared to 68,500 mt in January.
Currently, Ukraine's combined steel producers are operating 28 of a total of 43 blast furnaces, 15 of 21 converters and 19 of 42 open hearth furnaces.
According to Ukrainian Association of Metal Traders president Andrey Fedoseev, up to the end of the current year exports will remain the basic source of income for Ukrainian steel producers, as demand from the Ukrainian domestic market practically does not exist. Mr. Fedoseev went on to say that the situation would only change after the Ukrainian goverment gave money for infrastructural projects and after construction work recommenced.
In February Ukraine aims to produce 2.18 million mt of pig iron and 2.37 million mt of crude steel.