Unfavourable international market conditions have led to a further decline in crude steel production in Ukraine. According to Ukrmetallurgprom, Ukraine produced 1.31 million mt of crude steel in November, down by 15.8 percent compared to October. The pace of decline was faster than the 10.5 percent month-on-month drop seen in October. The major reason for the sharper drop was the ongoing lack of demand for semis abroad and low prices in the September-early October period, when most deals for November shipment were done.
Moreover, finished steel demand has worsened and so finished steel output fell in line with crude steel output, down by 17.4 percent month on month to 1.182 million mt in November.
As a result of the sizable decline in the October-November period, total crude steel production in Ukraine in the first 11 months of the year added just 0.3 percent, against an increase of 2.3 percent in January-October.
Nevertheless, the restart of one of the blast furnaces at Dniprovsky Integrated Iron and Steel Works (DMK) in late November may lead to some increase in overall steel production in the country, though it will remain reduced as some other steel mills are still out of the market.