Rusmet reported that flat steel with anticorrosion covers gains more popularity in Ukraine despite the general downturn, however national manufacturers are still not ready to meet market demand. Though, huge imported quantities and general growth of steel consumption facilitated construction of new galvanizing and coating capacities in Ukraine.
Till recent times there were only three galvanized flat steel producers in Ukraine: Mariupol Ilyich Iron and Steel Works with total galvanizing capacity of 250,000 tons per year, Modul Corp. with 200,000 tons per year and AZST-Color with not more than 70,000 tons per year of coated steel.
Each of them has its disadvantages. Thus, galvanizing capacities at the Mariupol Ilyich Iron and Steel Works are depreciated by two thirds. It means it is merely impossible to obtain quality galvanized cover at such equipment. Some local companies use this galvanized steel for various cold roll formed sections, nevertheless around a half of Ukrainian consumers prefer imported galvanized and coated steel from ArcelorMittal, Ruukki, US Steel Kosice, ThyssenKrupp, Eco Stahl, Voestalpine, Corus, POSCO and also from Russian Severstal and MMK. Modul Corp also has a quality problem. From the end of 2009 till April this year the line was idle because of weak local sales. Today it is loaded approximately for 40% working mainly for local market. The company has to use cold-rolled steel of Severstal while its own cold-rolling mill stands idle as well as its coating line. AZST-Color Co. is a part of Ruukki Ukraine and it uses galvanized steel for its polymer coated steel production. This galvanized steel is supplied from Finland, so there is no quality problem but there is another one – its cost.
This situation stimulated to appear new local producers. So, on April 24th a new galvanizing and polymer coating mill with total capacity of 100,000 tons per year was started in Alchevsk city by Metally and Polymery Co. The mill was constructed in less than two years, total investments amounted UAH 400 million. The technologies were supplied by Australian Bronx International Pty Ltd. Today the first stage of putting it into operation is complete. The coating lines allow to make paint film both on inner and outer side of a galvanized strip. The second stage is planned for August to September this year when the galvanizing line will be started.
The management of the company considers Ukraine only as the main sales market. With reaching its full project capacity, the company plans to cover 33% of the related steel market segment of Ukraine, first of all replacing imports. (Rusmet.ru)