One of the major Ukrainian steel producers, ArcelorMittal Kryvyi Rih (AMKR), is going to increase its capacity utilization rate from the current 25 percent to 50 percent amid an improved and stable energy supply in the first half of 2023, according to CEO Mauro Longobardo. At the moment, the mill works with only one out of four blast furnaces, but with better energy supply it will restart operations of another blast furnace. AMKR has started importing electricity following a recent government decision.
However, the CEO of AMKR said that it is unlikely that the company will improve the production utilization rate above 50 percent, taking into account big logistical issues as all major Ukrainian ports are blocked and so transportation costs are very high by rail. In addition, importation of electricity is also an addition to costs.
AMKR produced 1.2 million mt of crude steel in 2022, down by 76.3 percent, while pig iron output slumped 71 percent to 1.6 million mt, year on year.