The Ukrainian Metal

Ukrainian steel mills plan to hike steel output

Interfax quoted industrial officials as saying that Ukraine steel companies planned to increase steel output by 6% in 2011 to 34.5 million tons, but a shortage of coke might ruin this effort.

Ukraine, the world eighth-largest steelmaker, raised steel production to 32-33 million tons in 2010 after output fell to 29.8 million in 2009 due to the global economic slowdown.

Ukraine’s steel producers’ union Metallurgprom forecast that the rolled steel output could rise to 32.8 million tons this year from 30.68 million in 2010, while pig iron output would jump to 28.9 million tons from 27.4 million.

According to the local coke producers’ union Ukrkoks, the rise in pig iron production combined with a shortage of domestic coal output would force Ukraine to import 11.2 million tons of coking coal this year.

Mr. Anatoly Starovoit, Ukrkoks head, said “We annually import 9 million tons of coal concentrate mostly from Russia, but this year we will face a shortage of 2.2 million tons.”

He said the shortage could even jump to 3.2 million tons if Ukraine used coking coal for energy needs. Ukraine increased coal production by about 4% to 75 million tons in 2010. (Interfax)

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