Ukrainian steel output expected to decrease in April and May

According to the Ukrainian association of metal producers Metallurgprom, Ukrainian steelmakers are expected to register reduced steel output in April and May as compared to previous months.
 
According to Metallurgprom general director Vasily Harahulah, during the first 14 days of April 2009, Ukrainian producers' average daily output of pig iron decreased to 62,500 mt, compared to 66,900 mt in March and to 70,400 mt in February.
 
"According to the results for the first days of April, we can predetermine that our output of pig iron, crude steel and rolled steel products will go back to the levels of January 2009, and there is no reason to expect an increase in May," Mr. Vasily Harahulah stated.
 
The main reason behind the decreased steel output is that since the beginning of 2009 Ukrainian traders have been purchasing from steelmakers and replenishing their stocks, as they wait for a recovery of market prices. However, prices in the market have remained at the same level and traders' stocks have filled up, thus leading to the current decrease in traders' purchasing activity, said Mr. Harahulah.
 
For May 2009 Metallurgprom forecasts Ukrainian pig iron of 2.017 million mt, crude steel output of 2.350 million mt, and finished steel product output of 2.2 million mt.
 
According to Metallurgprom data, at the current time in Ukraine 16 of the country's 43 blast furnaces are operating, 17 of the country's 21 converters, and 12 of its 42 open hearth furnaces.