According to Ukrmetallurgprom, Ukraine produced 1.56 million mt of crude steel in October, decreasing by 10.5 percent or 184,000 mt compared to September. Pig iron output fell in line with crude steel output, declining by 9.1 percent month on month to 1.59 million mt.
Finished steel output amounted to 1.53 million mt last month, down by 2.3 percent month on month. The much slower decline in finished steel production was attributed to the reduction of semi-finished product sales in the export market due to unfavourable price conditions, while most domestic mills decided to keep their finished steel allocation relatively stable.
As a result of the sharp fall of crude steel production in October, the accumulative crude steel production for the January-October period was 17.96 million mt, up 2.3 percent from the same period last year, much slower than the 4.1 percent increase rate in the first nine months.
As a rebound has started in the international billet market in late October, Ukrainian mills may try to restart production at previously stopped equipment, but this scenario will depend on buying activity and the scrap market trend, sources said.
