Prices for rolled metal products in Ukraine grew by 26% in 2022, Anna Gontarenko, executive director of the Ukrainian Steel Construction Center Association, said.
“Due to the occupation of the production facilities of the largest metallurgical plants of Ukraine (Azovstal and MMK named after Ilyich), as well as a significant increase in the dollar exchange rate in 2022, there was an increase in prices for rolled metal products and, accordingly, metal structures, in which 2 /3 cost is occupied by rental. From the beginning of last year to May, the price of most items in the range of rolled products increased by at least 39%. But since August, prices for rolled metal products began to decline, and at the end of the year, its cost in hryvnia increased by an average of 26%,” she noted.
Gontarenko explained that, in general, the current trend of reducing the cost of rolled metal products globally and affected not only Ukrainian steel producers, but also European ones. In terms of demand, it has fallen significantly since the beginning of the Russian military special operation in Ukraine.
“Until the end of spring 2022, metal structure manufacturers, for the most part, completed pre-war orders, and production was partially loaded. After the de-occupation of part of the Ukrainian territories, there was a slight increase in demand due to the restoration or conservation of destroyed buildings and structures,” the expert added.
According to her, today a significant influence on the manufacturers of metal structures is unstable supply of electricity, since not all production processes can be provided with generators. However, companies find opportunities not to stop and ship products to customers in a timely manner.
“Depending on the capabilities and workload of production, each company chooses the best way for itself to continue working in the current conditions. They are adjusting to blackout schedules, installing generators for processes where possible, or switching to night shifts for processes that require a lot of electricity,” said the head of the USCC.
In general, Gontarenko positively assesses the prospects of the industry, since the recovery period will require effective and fast solutions, namely, such projects based on metal structures are able to provide.
“After the victory, there will be a long period restoration and will require a significant amount of steel structures, enclosing structures and related materials, as well as qualified survey, design and installation services for restoration. And the metal building industry is ready for this,” she said.
The head of the USCC noted that it is necessary to take a chance and replace the destroyed facilities with fundamentally new ones - not only in terms of technical equipment, but also with a high level of resource saving and energy efficiency.
“It is necessary today to actively develop programs for the restoration of Ukraine, including residential facilities and social infrastructure. We also expect an increase in demand for metal structures for the implementation of projects for the rapid restoration of infrastructure and commercial facilities,” the expert emphasized.