In June Ukrainian metal companies intend to produce 1.6 million tons of steel, 1.5 million tons of pig iron and 1.4 million tons of rolled metal, provided the situation does not change.

According to Ukrmetallurgprom forecast, in May Ukraine has to produce 1.6 million tons of pig iron, 1.8 million tons of steel and 1.6 million tons of rolled metal.

In April metal manufacture dropped to the 2-year minimum: pig iron – 1.5 million tons, steel – 1.6 million tons, rolled metal – 1.4 million tons.

The decrease has to do with the complete shut down of a number of companies because of the railroad blockade: Alchevsk Iron and Steel Works was shut down on February 13, Yenakievo Works – on February 21, Donetskstal – on February 26.

Dneprovsky Iron and Steel Combine, shut down on March 30 because of the lack of coke and other raw materials, has been idle all April. Mariupol Ilyich and Azovstal experienced a severe shortage of coke in April, also because of the blockade and Avdiivka Coke problems.

The current average daily output is on the April level. As of May 16, 16 out of 28 blast furnaces (57%), 12 out of 21 converters (57%), 7 out of 9 open-hearth furnaces (78%) and 7 out of 15 electric arc furnaces (47%) are operating.

Output in January-April is as follows: 6.3 million tons of pig iron, down by 20% YoY, 7 million tons of steel, down by 15%, and 6 million tons of rolled metal, down by 18%.

In April metal companies received 1.8 million tons of local iron ore raw materials, down by 90 thousand tons MoM, or 8.3 million tons in 4 months, down by 9% YoY, or by 0.8 million tons. Iron ore raw materials were not imported in April, with 90 thousand tons imported in Q1, down by 90% YoY. Exports in April totaled 3.7 million tons, down by 330 thousand tons MoM, and 13.6 million tons in 4 months.

Local coal supplies to coke companies in April were on the level of 220 thousand tons, down by 40 thousand tons MoM, and 1.25 million tons in January-April, down by 37% YoY. Coal imports reached 780 thousand tons, down by 90 thousand tons MoM, and 3.5 million tons, down by 17% YoY in 4 months. In April Ukrainian coke plants received 1 million tons of coking coal, down by 130 thousand tons MoM, and 4.8 million tons in January-April, down by 23% YoY. The share of imported coal was 74% against 68% in January-April 2016. Coking coal stocks as of May 1 totaled 560 thousand tons.

Ukrainian coke deliveries to metal companies in April reached 620 thousand tons, down by 35 thousand tons MoM, with 2.8 million tons supplied in 4 months, down by 25% YoY. In April Ukraine imported 75 thousand tons of coke, down by 15 thousand tons MoM, and in 4 months – 280 thousand tons, down by 3% YoY. Taking imports into account metal companies received 3.1 million tons of coke, down by 24% YoY.

In April metal companies received 290 thousand tons of scrap, up by 25 thousand tons MoM, or 95% of their need, with 1 million tons delivered in 4 months, up by 15% YoY, and 82% of the need. Scrap stocks in April increased by 20 thousand tons, to 115 thousand tons (190 thousand tons as of January 1). Ukraine exported 27 thousand tons of scrap in April and 66 thousand tons in 4 months, down from 94 thousand tons in January-April 2016.

In April Ukrainian metal companies consumed 120 million cubic meters of gas, down by 20 million cubic meters MoM.

Average daily gas consumption dropped by 0.5 million cubic meters MoM, to 4 million cubic meters.

In January-April metal industry consumed 630 million cubic meters of gas, up by 6% YoY. Average daily consumption was 5.2 million cubic meters against 4.9 million cubic meters in January-April 2016.

Electricity consumption totaled 4 billion kW-h, down by 8% YoY. (Ukrainian metal)

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