Metallurgical sector of Ukraine in 2019 lost to 23.4 billion hryvnia from falling world steel prices and a further 4.4 billion hryvnia from strengthening of national currency. This was stated by the Minister of economic development of Ukraine Tymofiy mylovanov on the page on Facebook, noting that long-term strengthening of the hryvnia is typically not the case for Ukraine.
Milovanov confirmed that the industry is "really difficult" and a decline in industrial production in November 2019 reached 14.2 %. But the main reason for the fall of the steel industry is the world price, not the strengthening of the hryvnia, he said.
However, according to the official, the Ukrainian metallurgists were able to save on the purchases of imported raw materials thanks to the weakening dollar.
"Thanks to the revaluation of the hryvnia emerged significant savings on imported components," - said Milovanov.
He gave evidence that in 2017 the share of imported goods (raw materials, energy, components) in the intermediate consumption of industry has exceeded 25%, and given the imported component in the Ukrainian semi-finished products such as coke and ferro-alloys (economists call this the "indirect effects of imports"), the share of imported components in the final product of the domestic industry increased by nearly 45%.
the Fall of steel production in Ukraine totaled in 2019, according to preliminary data, about 1.3% to 20,82 million tons of steel, Production of cast iron at the end of 2019, made up 20.05 million tons (- 2,5%); production of rolled steel decreased by 1.1% to 18.16 million tons.
