In 2017 Zaporizhstal decreased prime cost of raw steel manufacture by $22 per ton.
“We have a complex program on prime cost decrease. Last year we took some 400 measures to decrease it, which combined provided around $22 per ton”, the company CEO Rostislav Shurma said.
Zaporizhstal has faced the increase of railroad, electricity and gas tariffs, as well as the growth of raw materials prices.
For example, it used to buy metallurgical limestone at 150 UAH per ton plus 50 UAH per ton for delivery, while now the price is up to 1 thousand UAH per ton.
“To somehow compensate for this, we have been carrying out the program to decrease expenses. This includes the decrease of energy consumption, as well as gas and raw materials. We were able to save $22 per ton, but, of course, the inflation impact on us was much stronger”, Shurma added. (Ukrainian metal)