According to Ukrmetallurgprom, Ukraine will produce 20.5 million mt of crude steel in 2019, which will be down 2.8 percent from 2018. The performance of the industry will be the worst for the whole period of Ukraine’s independence. It is also expected that steel output will be only 1.2 million mt in December, compared to 1.31 million mt in November.
Apart from the complex situation in the international markets, Ukrainian mills faced issues inside their country also. In particular, higher railway tariffs from March 2019, the increase in electricity costs from September, costlier transportation fees for gas and the increased strength of the domestic currency against the US dollar have put pressure on local steel mills, according to Ukrmetallurgprom.
Despite domestic mill DMK restarted one BF in late November due to higher billet prices in the international market, many other mills are still operating at reduced capacity. DMZ has not increased its production, while ArcelorMittal Kryviy Rih has reduced output.