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Mining and metallurgical complex of Ukraine shows a record decline

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the Main reasons for this fall in addition to the global quarantine with increased state protectionism, reduction of prices and demand for steel products, as well as "tariff lawlessness" by national state monopolies.

Mining and metallurgical complex of Ukraine shows a record decline

According to some data OP "Ukrmetallurgprom", in April 2020 in Ukraine was produced 1.34 million tons of steel, which is 30.9% less than in April 2019. Metal production kV annual comparison has fallen by 20.6% to 1.3 million tons, the production of pig iron – by 24.3% to 1.39 million tons. Also significantly reduced the production of sinter and metallurgical coke.

as of may 14, 2020, from the current production of metallurgical facilities in operation are: 16 of the 21 blast furnaces, 4 of the 8 open-hearth furnaces, 11 of the 16 converters, page 6 of 15 electric furnaces and 15 of the 16 machines for continuous casting of workpieces.

the Association said the reasons for record decline in the steel industry of the country was not only the pandemic, but also the overall negative situation on the world steel market and the domestic market.

"the Main reasons for record decline in production, in addition to the global quarantine – strengthening of state protectionism in the traditional for the Ukrainian steel industry countries of export, lower prices and reducing demand for steel, the presence of excess global steelmaking capacity of about 440 million tons per year, as well as "tariff lawlessness" on the part of national state monopolies (at "Ukrzaliznytsya" GP "Administration of seaports of Ukraine," Naftogaz, etc.)", - stated in the message.

The "Ukrmetallurgprom" called on the government to provide public sector support, primarily to ensure a stable and favourable tariff and tax laws, providing quality service from the public transport companies, creating the conditions for increasing investment in the real sector and the related process of growth of metal consumption, and protect the interests of Ukrainian exporters in foreign markets.

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