In 2022, steel enterprises of Ukraine reduced the production of rolled products by 71.96% compared to 2021 – to 5.35 million tons. This is evidenced by the data of the Ukrmetalurgprom.
In 2022, pig iron smelting decreased by 69.8% compared to the previous year – to 6.39 million tons. Steel production in this period amounted to 6.26 million tons, which is 70.7% less y/y.
In December 2022, Ukrainian steelmakers produced 108,000 tons of rolled steel, which is 92.9% less compared to December 2021, and 51.3% less than the previous month. Steel production decreased by 93.9% y/y for the month and 66% m/m – to 106,000 tons, and pig iron – by 85.7% y/y and by 26.3% m/m – to 247,000 tons.
The low production of Ukrainian steelmakers is connected with logistical problems, the unfavorable situation of the world market, as well as with the destruction due to hostilities of the two largest enterprises of Ukrainian iron and steel industry – Azovstal and Ilyich Iron and Steel Works of Mariupol..
After the Russian invasion of Ukraine at the end of February 2022, Europe became the only market for Ukrainian products. At the same time, it is difficult and expensive to deliver goods by rail. The costs of steelmakers for the shipment of rolled steel to customers increased at least by 2 times, and the demand for products fell due to unfavorable market conditions.
Due to the above-mentioned factors, Ukrainian iron and steel enterprises operate with a low level of capacity utilization and even temporarily stop some of them. In addition, on October 10, 2022, the Russian Federation shelled the state electricity infrastructure of Ukraine, which caused problems with energy supply of regions and industry.