Ukrainian steel sector is planning to produce 3.02 million tons of steel in December, essentially the same production volume as the two previous months.
With such results, the industry will post a 35.1 million tons of steel output in 2011, or a 7% YoY increase.
Industry association Metallurgprom is forecasting a 36.5 million tons of steel for the next year, up by 4% YoY.
According to a Phoenix Capital analyst, ”The news is neutral for the steel sector. The Ukrainian steel sector is pushing through a period of macro economical uncertainty with stable production volumes, despite that the sales price of steel products were cut to bottom levels and in some cases overstepping the breakeven point. The prices for semi products slabs are the same as finished steel hot rolled coils at $605 per ton indicating a weak demand from final consumers. Moreover, traders are reluctant to take on market risks and are not accumulating stockpiles. Signs of possible recovery are scarce with the exception of resuming some activity on the steel scrap market in CIS ports this can be a forerunner of price hikes on the finished steel market in late December. The expected growth of steel production is neutral as the growth pace will be lower if compared to that of 2011 and the total output is close to production in 2003”. (Phoenix Capital)
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