Following the results of the work of metallurgical enterprises in March 2021, Ukraine increased steel production by 0.6% compared to the same period in 2020, to 1.777 million tonnes, moving from 12th to 13th place in the ranking of 64 countries, the world’s major manufacturers of these products, compiled by the World Steel Association (Worldsteel).
In March, an increase in steel production by March 2020 was recorded in all countries of the top ten.
The top ten steel-producing countries in March 2021 are as follows: China, India, Japan, the United States, Russia, South Korea, Germany, Turkey, Brazil and Iran.
This is followed by Italy (2.312 million tonnes, an increase of 68.8%), Taiwan (China, 1.980 million tonnes, an increase of 1.2%), Vietnam (1.940 million tonnes, an increase of 3769%), Ukraine (1.777 million tonnes, an increase of 0.6%) and Mexico (1.410 million tonnes, 12.9% down).
Global steel demand in 2021 will increase by 5.8% compared to the previous year, to 1.874 billion tonnes after a decrease by 0.2% in 2020, to 1.772 billion tonnes, according to the World Steel Association (Worldsteel).
According to the association’s short range outlook released on Thursday, steel demand will see further growth of 2.7% in 2022 compared to 2021 and reach 1.925 billion tonnes.
The current forecast assumes that the ongoing second or third waves of infections will stabilise in the second quarter and that steady progress on vaccinations will be made, allowing a gradual return to normality in major steel-using countries.
Commenting on the outlook, Mr Al Remeithi, the Chairman of the Worldsteel Economics Committee, said, despite the disastrous impact of the pandemic on lives and livelihoods, the global steel industry was fortunate enough to end 2020 with only a minor contraction in steel demand.
“This was due to a surprisingly robust recovery in China, with growth of 9.1%. In the rest of the world steel demand contracted by 10%. In the coming years, steel demand will recover firmly, both in the developed and developing economies, supported by pent-up demand and governments’ recovery programmes. However, for most developed economies a return to the pre-pandemic levels of steel demand will take a few years,” the Worldsteel’s press release said.
According to the association, in China, steel demand is expected to grow by 3% in 2021, to 1.025 billion tonnes, and in 2022 by another 1%, to 1.035 billion tonnes.
Steel demand in the CIS countries in 2021 will increase by 3.4%, to 60.2 million tonnes, and in 2022 it will increase by 3.2%, to 62.1 million tonnes.
Steel demand in the EU (27) and the United Kingdom this year will increase by 10.2%, to 154.9 million tonnes, and in 2022 it will increase by 4.8%, to 162.4 million tonnes.
The USMCA countries will increase consumption this year by 7.6%, to 122.6 million tonnes, and in 2022 by another 4.6%, to 128.3 million tonnes. Central and South America will see 10.6% growth this year and 4.2% growth next year, to 42.7 million tonnes and 44.5 million tonnes, respectively.
Africa will increase demand by 8.3%, to 38.6 million tonnes this year, and will see an increase of 5.9%, to 40.9 million tonnes in 2022, the Middle East in 2021 is expected to increase consumption by 5.4%, to 48.5 million tonnes, and in 2022 by 3.3%, to 50.1 million tonnes.
The countries of Asia and Oceania in 2021 will increase demand by 4.7%, to 1.364 billion tonnes, and in 2022 by 2%, to 1.392 billion tonnes.
In the outlook for countries, in particular, it is reported that India in 2021 is expected to increase steel consumption by 19.8% compared to 2020, to 106.1 million tonnes, in 2022 by 5.9%, to 112.3 million tonnes, the United States will increase demand by 8.1%, to 86.5 million tonnes, and in 2022 by 4.3%, to 90.2 million tonnes. Japan this year will increase demand by 6.5%, to 56 million tonnes, and in 2022 by another 5%, to 58.8 million tonnes.
South Korea in 2021 will increase steel consumption by 5.2%, to 51.5 million tonnes, and in 2022 by 2.5%, to 52.8 million tonnes. The Russian Federation will increase demand by 3% in 2021 and also by 3% in 2022, to 43.8 million tonnes and 45.1 million tonnes, respectively. Germany this year will increase demand by 9.3%, and next year by 5.3%, to 34 million tonnes and 35.8 million tonnes, respectively. Turkey in 2021 will increase demand by 18.7%, in 2022 by 5.7%, to 35 million tonnes and 37 million tonnes, and Vietnam will demonstrate growth by 5% and by 7.6%, to 24.5 million tonnes and 26.3 million tonnes, respectively. Mexico will increase demand in 2021 by 7.5%, to 23.4 million tonnes, and in 2022 by 5.5%, to 24.6 million tonnes.
Mariupol-based Illich Iron and Steel Works (Donetsk region), part of Metinvest Group, in January-February this year increased the production of general rolled products, according to recent data, by 19% compared to the same period last year, to 660,000 tonnes.
As the enterprise told Interfax-Ukraine, steel production during this period increased by 3.7%, to 700,000 tonnes, cast iron by 15.2%, to 765,000 tonnes, and sinter by 14.3%, to 2.152 million tonnes.
In February, the plant produced about 300,000 tonnes of general rolled products, 340,000 tonnes of steel, 410,000 tonnes of cast iron, and 1.07 million tonnes of sinter.
Metinvest is a vertically integrated group of mining companies. Its main shareholders are SCM Group (71.24%) and Smart-Holding (23.76%), jointly managing the company.
Metinvest Holding LLC is the managing company of Metinvest Group.
Dniprovsky Iron and Steel Works (DMK, Kamianske, Dnipropetrovsk region), part of the Industrial Union of Donbas (ISD) corporation, in January-February of this year, increased the production of general rolled products, according to recent data, by 3% compared to the same period last year, to 415,000 tonnes.
As the representative of the enterprise told Interfax-Ukraine, during this period the plant increased steel production by 4.5%, to 420,000 tonnes and kept the production of cast iron at the level of 375,000 tonnes.
In February, 195,000 tonnes of rolled products, 195,000 tonnes of steel, and 170,000 tonnes of cast iron were produced.
As reported, the plant in 2020 increased the production of general rolled products by 13.3% compared to the previous year, to 2.54 million tonnes, steel by 15.2%, to 2.56 million tonnes, cast iron by 19.2%, to 2.36 million tonnes, and agglomerate by 40.2%, to 4.06 million tonnes.
Dniprovsky Iron and Steel Works specializes in the production of cast iron, steel, rolled products and consumer goods.
The company is controlled by the ISD corporation which was founded in 1995. It is an integrated holding company that owns or manages stakes in mining and metals enterprises.
Metinvest, the largest Ukrainian mining and metallurgical holding, in 2020 increased steel production by 9% compared to 2019, to 8.268 million tonnes, cast iron by 7%, to 8.475 million tonnes, and total coke production by 3%, to 4.808 million tonnes.
According to a press release from the parent company Metinvest B.V. on the results of operating activities for 2020, the group in the fourth quarter of 2020 reduced the production of cast iron by 9% compared to the previous quarter, to 2.105 million tonnes due to a decrease in production at both Mariupol plants.
Thus, the decline at Illich Iron and Steel Works amounted to 137,000 tonnes, as blast furnace No. 3 was shut down for a major overhaul in November 2020 and at Azovstal to 63,000 tonnes amid less intensive blast furnace operations due to a planned overhaul of the air separation unit’s oxygen block and changes in the burden composition.
Steel production in the fourth quarter of 2020 decreased by 3% compared to the previous quarter, to 2.118 million tonnes, mainly due to an overhaul of basic oxygen furnace No. 2 at Azovstal in September-October 2020. At the same time, the volume of steel production at Illich Iron and Steel Works remained practically unchanged compared to the previous quarter as hot metal was reallocated to steelmaking.
In 2020, cast iron production increased by 7% compared to last year amid greater production at both Mariupol plants. At Azovstal, production climbed by 328,000 tonnes, as the highly efficient blast furnace No. 3 was launched following its major overhaul and upgrade in June 2019 and a planned major overhaul of blast furnace No. 2 in the fourth quarter of 2019.
At Illich Iron and Steel Works, output increased by 219,000 tonnes, mainly due to a low-base effect caused by the shutdown of blast furnaces No. 3 and 5 for planned overhauls in 2019.
Steel production in 2020 increased by 9% year-over-year mainly due to an increase in production at Illich Iron and Steel Works by 512,000 tonnes amid the reallocation of hot metal to steelmaking. The increase in production at Azovstal by 178,000 tonnes was caused by an increase in hot iron production.
In the fourth quarter of 2020, the production of semi-finished products decreased by 17% compared to the previous quarter, to 816,000 tonnes. At the same time, the decrease in cast iron production amounted to 107,000 tonnes as hot metal was redirected to make steel and downstream products at Illich Iron and Steel Works, and marketable slab to 57,000 tonnes due to the redistribution of slab in favor of flat-rolled products. In 2020, the production of merchant semi-finished products increased by 5% compared to 2019, to 3.313 million tonnes as Mariupol plants boosted merchant slab output by 329,000 tonnes in response to greater demand. Consequently, cast iron production declined by 14% y-o-y to 1.088 million tonnes.
In 2020, production of finished goods increased by 4% compared to the previous year, to 5.833 million tonnes. Namely: the production of flat products increased by 132,000 tonnes, to 4.809 million tonnes; the production of long products increased by 80,000 tonnes, to 794,000 tonnes; the production of rail products increased by 30,000 tonnes, to 79,000 tonnes amid an increase in orders from the Ukrainian railways; and the production of tubular products decreased by 4,000 tonnes, to 151,000 tonnes.
In the fourth quarter of 2020, coke production increased to 1.224 million tonnes.
Mariupol Illich Iron and Steel Works (Donetsk region), a member of the Metinvest Group, in 2020 increased the production of general rolled products, according to recent data, by 12.4% compared to the previous year, to 3.67 million tonnes.
As the enterprise told the Interfax-Ukraine, steel production during this period increased by 13.7%, to 4.05 million tonnes, cast iron by 4.4%, to 4.65 million tonnes, and sinter by 12.8%, to 12.34 million tonnes.
In December, Mariupol Illich Iron and Steel Works produced about 320,000 tonnes of general rolled products, 345,000 tonnes of steel, 330,000 tonnes of cast iron, and 1.06 million tonnes of sinter.
Illich Iron and Steel Works is part of Metinvest Group, the main shareholders of which are SCM Group (71.24%) and Smart-Holding (23.76%), jointly managing the company.
Metinvest Holding LLC is the managing company of Metinvest Group.
ILLICH IRON AND STEEL, MARIUPOL, METINVEST, METINVEST’S COMPANIES, STEEL
