Ukraine’s crude steel production in 2023 decreased by 0.6% year-on-year

On January 11, 2024, the Ukrainian Steel Producers Association (Ukrmetallurgprom) stated that in 2023, Ukraine's crude steel production was 6.228 million tons, a year-on-year decrease of 0.6%. According to preliminary survey data from the association, Ukraine's pig iron production in 2023 was 6.03 million tons, a year-on-year decrease of 6.1%, while the production of rolled products was 5.372 million tons, a slight increase of 0.4%.

After the outbreak of the Russia-Ukraine conflict, the eastern region of Ukraine S280GD+ZA steel suffered a heavy blow, and the eastern region is also the concentration place of Ukrainian steel mills and coal mines. In March and April 2022, the production capacity of Azovstal, the second largest steel plant in Ukraine, and Illich, the third largest steel plant, were completely destroyed, both of which are owned by Metinvest, the largest steel group in Ukraine. At present, Zaporizhtal steel plant under Metinvest is the second largest steel plant in Ukraine, and the first largest steel plant is still Arcelor Mittal Kryvyi Rih steel plant under ArcelorMittal.

In 2023, Zaporizhtal's steel production was 2.467 million tons, a year-on-year increase of 65.4%, and its pig iron production was 2.719 million tons, a year-on-year increase of 35.3%. Among them, in December 2023, the production growth rate of Zaporizhtal S280GD+ZA steel plant was relatively significant, with crude steel production of 228600 tons and rolled steel production of 206500 tons, both increasing more than twice year-on-year. The production of pig iron was 265500 tons, an increase of 87.1% year-on-year. Chairman Zaporizhtal also stated that in 2024, we plan to maintain production and increase our production under favorable conditions of overseas market demand and favorable conditions.

In terms of export transportation, although Ukraine has previously opened a safe transportation route in the Black Sea and has been operating steadily since September 2023, most of Ukraine's steel product exports still rely on railway transportation to Poland before export. Oleksandr Kubrakov, the First Deputy Prime Minister and Minister of Infrastructure of Ukraine, stated that during the four months of transportation on the Black Sea route in Ukraine, Ukraine exported a total of about 1500 tons S280GD+ZA steel of goods, including approximately 5 million tons of iron ore and metal products, with the rest mainly being grain. From January to September 2023, a total of approximately 469 ships passed through this route.