Reuters quoted the Ukrainian association of metal producers Metallurgprom as saying that country had reduced raw steel production by 4.5% to 2.840 million tons in May from 2.976 million in April due to a fall in foreign demand.
Metalurgprom said the production of pig iron fell to 2.4 million tons in May from 2.470 million in April while rolled steel output decreased to 2.676 million from 2.680 million. A rise in coke and iron ore prices combined with a near stability in world steel prices made Ukrainian production less competitive on the market.
Mr. Dmytro Kolesnikov, Industry Minister, last month said Ukraine steel output was likely to total 32 million tons to 33 million tons in 2010 compared to the previous forecast of 31.5 million. He said the growth might take place despite a crisis in the euro zone and a fluctuation in steel prices.
From the second half of 2008, Ukrainian steelmakers have faced reduced demand across the world and many of them have been forced to cut steel output because of the global financial crisis and economic downturn. (Reuters)