In the first half of 2023, Ukraine's crude steel production reached 2.83 million tons, marking a 38% decrease compared to the same period last year. Similarly, pig iron production amounted to 2.84 million tons, showing a decline of 38% year-on-year. The production volume of rolled products also witnessed a significant drop, reaching 2.37 million tons, reflecting a decrease of 41% compared to the same period of the previous year.
The decline in steel production in Ukraine can be attributed to several factors. Weak global demand for steel has played a significant role in reducing production levels. Additionally, ongoing logistical problems within Ukraine, such as transportation and infrastructure challenges, have contributed to the decline. Furthermore, the impact of the war on the Azovstal and Ilyich iron and steel mills, which are Ukraine's largest steel mills, has further disrupted production and added to the overall decline in output. These combined factors have resulted in a challenging operating environment for the steel industry in Ukraine.
In June, steel production in Ukraine experienced a significant month-on-month decline of 25%, reaching 437,000 tons. Similarly, pig iron production dropped by 19.4% to 486,000 tons, and rolled products saw a decrease of 16.4% to 393,000 tons. These figures highlight the downward trend in steel production in Ukraine, indicating a challenging period for the industry.
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