Analysis of industrial production in Ukrainian metallurgy: estimates for the 1st half of 2017

In the I-th half of the year, a number of enterprises in the industry showed an increase in the production of rolled metal against the background of a decrease in the production of iron and steel in Ukraine.

According to the statistics provided by the OP "Ukrmetallurgprom", for six months of 2017, Ukrainian metallurgists reduced steel production by 17% (to 10.3 million tons) and pig iron by 21% (to 9.4 million tons) ). But a number of enterprises managed to maintain positive dynamics and improve their industrial production indicators. The Internet resource Delo.UA studied the reasons that had a positive impact on the production of ferrous metals.

The general decline in the metallurgical industry is directly related to the freezing of economic ties with the occupied territories of ORDLO. Until the beginning of this year, three enterprises operated there (Donetsk MZ, Yenakiyevsky MZ with a branch in Makeevka and Alchevsk MK), which were taken into account in the official sectoral statistics of Ukraine. Another plant in Kamensky (Dnepropetrovsk region) – Dneprovsky MK – although it is located on the territory controlled by Ukraine, it received raw materials (coke) from the occupied Alchevsk. With the beginning of the transport blockade of the so-called. "LDNR", the plants and factories listed above, completely stopped work in February-March 2017. According to unofficial data, some of them are trying to revive production, but due to the pseudo-nationalization carried out by the leadership of the militants, their performance indicators are not taken into account in the statistics of our state.

Despite this, individual metallurgical enterprises managed to increase the output of the main types of rolled metal products in the first half of the year. So, the Mariupol plants of the MMK named after. Ilyich and MK "Azovstal" (both are part of the Metinvest group) increased the production of steel and iron:

• MMK named after Ilyich – by 4% to 1 million 488 thousand tons (steel) and by 2% to 1 million 862 thousand tons (cast iron);
• MK "Azovstal" - by 20% to 2 million 166 thousand tons (steel) and by 22% to 1 million 898 thousand tons (cast iron).

Both metallurgical giants have a similar industrial production profile – produce flat products and slabs. The mills export most of the semi-finished products to the steel-rolling plants of the Metinvest group located in the UK and Italy, where the finished product is already being produced.

What caused the growth in steel and iron production at these plants? Firstly, thanks to the improvement of the transport infrastructure, the supply of iron ore by railway lines from Krivoy Rog to Mariupol has increased. Secondly, at the beginning of 2017 at JSC "Zaporizhstal" a large-scale modernization of the blast-furnace production of ferrous metals began. Therefore, "Metinvest", which controls the Zaporozhye metallurgical plant, was able to transfer part of the orders to the Mariupol plants. At the same time, Zaporizhstal reduced the industrial production of steel and pig iron for the reporting period (by 10%, to 1 million 670 thousand tons and by 5%, to 1 million 893 thousand tons, respectively).

As a result of overhauls, two more metallurgical enterprises – "EVRAZ-DMZ" (Dnepr) and ArcelorMittal Krivoy Rog. At the same time, the production of steel at the Dnieper plant decreased much more than that of pig iron.

Also, the production dynamics of Ukrainian electrometallurgists has noticeably improved. So, "Dneprospetsstal" (Zaporozhye) increased steel output by 14%, Elektrostal (Kurakhovo, Donetsk region) by 31%, while Interpipe Steel is in the lead. (Dnepr) with an increase of 33%. This is explained by the fact of increasing the supply of ferrous metal scrap to the plants, which is their only source of raw materials. In 2015-2016 in the supply of ferrous scrap to these enterprises, instability and imbalance were noted, but the changes made to the legislation & nbsp; forced scrap collectors to reorient themselves to the domestic market, tk. export has become less efficient.

Until the end of 2017, certain positive developments are possible only at the Dnipro EVRAZ-DMZ, where work has started to restart the production cycle. If the plant is able to put into operation at least two blast furnaces by the beginning of autumn, then by the beginning of 2018 it will be able to produce another 800 thousand – 1 million tons of steel and iron.

A certain increase in the smelting of ferrous metals may occur at MMK im. Ilyich and ArcelorMittal Krivoy Rog after the launch of high-tech CCMs – steel continuous casting machines. However, this issue should be considered from a long-term perspective.