The Ukrainian market of coated metal is reviving after a fall in 2014-2015 thanks to the rise in the construction.
According to Metinvest marketing director Roman Kurashev, in 2016 galvanized steel consumption in Ukraine increased by 26% YoY, to 298 thousand tons, and this year it is expected to reach 307 thousand tons, almost on par with 2014.
The demand for polymer-coated metal in 2016 increased by 47%, to 279 thousand tons, and will reach 313 thousand tons in 2017.
But the local market is greatly influenced by imports. There are only 3 manufacturers of coated metal in Ukraine: Mariupol Ilyich Iron and Steel Works, a part of Metinvest, Module-Ukraine and Unisteel, which resumed operation earlier this year. So even if the import share of coated metal is slowly decreasing (to 36% in 2016), the consumption is still covered by more than 90% by imported metal. More than half of imports accounts for China with a lot of thin metal with minimal coating.
In view of this Metinvest is working on stimulating coated metal consumption on the local market, by promoting this product with the help of the Ukrainian Center for Steel Construction and making arrangements with other companies, like Module-Ukraine and Unisteel. The group also plans to modernize capacities and increase output. There are also plans to create its own capacities of metal coating.
For the past 4 years Mariupol Ilyich has completely switched to producing converter steel with continuous casting. More than 95% of the products are manufactured not according to the outdated GOSTs, but to the euro-norms. Because of this Metinvest increases galvanized steel exports and plans to export 60 thousand tons to far foreign countries, with at least 30 thousand tons to the EU. (Ukrainian metal)