Steel production 4% down in September

Growth of production was shown by only Dzerzhinsky Metallurgical Plant and Yenakieve Steel

KYIV, October 4, 2011 (UBO) – In September 2011, steel production in Ukraine decreased in comparison with September 2010 by 4 percent to 2.90 million tons. This is stated in a review of the investment company Astrum with reference to the operational data of Metallurgprom, UkrInform reported.

Last month, the worst dynamics was demonstrated by the Dnepropetrovsk-based Petrovsky metallurgical plant, ArcelorMittal Kryviy Rih and Alchevsk Metallurgical Plant, which decreased production by 22 percent, 11 percent and 8 percent month on month, respectively.

Growth of production was shown by only Dzerzhinsky Metallurgical Plant and Yenakieve Steel (15 percent and 4 percent). At the same time, Mariupol’s Ilyich metallurgical mill, AzovStal and ZaporizhStal reduced smelting by 5 percent, 2 percent and 2 percent month on month, respectively.

Since the beginning of the year, steel production in Ukraine increased by 8 percent year on year, with the greatest growth shown by the Alchevsk and Dzerzhinsky metallurgical mills (27 percent and 19 percent year on year, respectively).

"In September, steel production in Ukraine was 3 percent above our forecast made at the beginning of last month. We expect that in October 2011 the average daily production of steel in Ukraine reduced by 3-5 percent m/m on the background of weakening demand for metal in the world and Ukrainian rolled stock quotes reduction, which started 3 weeks ago," according to a review of the investment company.

According to a forecast by the chief economist of the investment company Dragon Capital, Olena Bilan, the prices for steel (Ukraine’s main export product and an important factor in the stability of national currency) in the current year will fall by 15-20 percent.