Via Metal Miner

 

For the first half of 2024, Ukrainian steel manufacturing increased finished and semi-finished production by about one-third year on year. According to a July 15 report from Kyiv-based steelmaking association Ukrmetallurgprom, volumes for the first six months came to 3.14 million metric tons, representing a 32% rise from an estimated 2.37 million metric tons.

The association also cited the State Customs Service of Ukraine as saying that steelmakers exported almost 2 million metric tons, or 63.6% of that total. In comparison, Ukrmetallurgprom pointed out that exports in H1 2023 were 52.9% of the total at 1.25 million metric tons.

One source told MetalMiner that the removal of import duties on Ukrainian steel into the European Union in early June 2022 was behind the increases. The move specifically intended to aid the economy of Ukraine following Russia’s invasion of the country in February 2022.

Steel Manufacturing Totals Indicate Significant Changes 

Semi-finished products comprised over 45% of the exports within H1 2024 exports. Ukrmetallurgprom noted that this figure remained practically unchanged from H1 2023. According to the State Customs Service of Ukraine, the country’s main export markets were EU-27 at 77.1%, other Europe at 6.9%, and Africa at 6.4%.

Billet is a primary export for steel manufacturers in Ukraine. Due to its proximity to the Black Sea, many Turkish rollers purchase the semi-finished product to make rebar, wire rod, and merchant bar. However, Ukrmetallurgprom also noted that flat-rolled products totaled 41.7% of exports in H1 2024, an increase from the 33.6% seen in H1 2023.

The share of exports represented by longs products declined sharply from almost 20.5% to just 12% of the total. Flat products also dominated finished steel imports into Ukraine at slightly over 80% of the total, against 18.3% for longs in H1. Data from Ukrmetallurgprom showed that those percentages remained largely unchanged since H1 2023.

Ferrexpo Also Reported Increases 

Upstream, Ukrainian iron ore producer Ferrexpo reported an 83% year-on-year increase in its pellets production for the first six months of 2024, thanks in part to the opening of the Black Sea maritime corridor.

“Since the corridor was opened in late 2023, it is estimated that over 800 ships have safely passed through, including 90 with ferrous commodities,” the company said on July 8. “The increased number of owners prepared to charter vessels to Ukrainian ports resulted in improved availability. However, freight rates and insurance risk premiums remain high, not only for the passage to Ukraine, but also through the Red Sea.”