According to the report issued by Ukrainian galvanized steel producer Unisteel, in 2010 Ukraine's consumption of galvanized steel increased by about 30 percent year on year to 330,000 mt - exceeding all forecasts and confirming that the galvanized steel sector is gradually recovering from the crisis, with construction companies increasing their activities.
In 2011, Ukraine's consumption of galvanized steel is expected to rise by a further 10-15 percent year on year to about 380,000 mt.
As stated by Unisteel, in 2010 the Ukrainian galvanized steel market was characterized by increased competition, with two new producers of galvanized steel appearing in the market, i.e., Unisteel, and Metals and Polymers. Unisteel started its shipments in July 2010, securing orders not only from the domestic market but also from Moldova, Azerbaijan and Belarus. As regards Metals and Polymers, which started production in autumn 2010, Unisteel's analysts said it will be idle in January because of low demand.
Meanwhile, in 2010 Ukraine imported about 146,000 mt of galvanized steel, up 30 percent compared to 2009. In the first half of 2010, the Ukrainian galvanized steel market was oriented mainly towards imports, with the leading suppliers of galvanized steel to Ukraine being US Steel Kosice and ArcelorMittal Temirtau. As new local galvanized steel producers appeared in the market, the dependence on imports decreased.