Business news from Ukraine

“Zaporizhstal” reduced its rolled steel shipments by 16% in 4 months

3 May , 2023  

Zaporizhstal steelmaker Zaporizhstal in January-April of the current year decreased shipment of rolled steel by 16.1% compared to the same period of the last year – down to 530.9 thousand tons.
According to the company, steel production fell by 10.3% to 646.5 thousand tons during this period, while pig iron production dropped by 13.6%, to 717.1 thousand tons.
In April 2023, Zaporizhstal produced 231.8 thousand tons of cast iron (in April 2022 – 69 thousand tons), 252.9 thousand tons of steel (73.6 thousand tons), shipped 205.1 thousand tons of rolled steel (68.2 thousand tons).
“The increase in production levels in April 2023 compared to the same period last year is due to the withdrawal of production facilities from forced hot mothballing, caused by full-scale military operations in Ukraine”, – explained in a press release.
It is a reminder that due to aggravation of military actions in the region, since the beginning of March 2022 Metinvest Group has put some of Zaporizhstal’s equipment into hot preservation mode. At the end of March of the same year the plant partially resumed cold-rolling shop operation for production and shipment of cold-rolled coils to European consumers. A month after the forced shutdown the mill put the equipment out of conservation and partially resumed production. Since April 2022 the mill has been working at an average of 50% capacity.
As it was reported, in January-March 2023 “Zaporizhstal” decreased shipment of rolled steel by 42.3% compared to the same period in 2022 – to 325.7 thousand tons, steel melting – by 39.2% to 393.6 thousand tons, cast iron – by 36.3%, to 485.3 thousand tons. In March, 193.6 thousand tons of iron, 184.4 thousand tons of steel were produced and 150.8 thousand tons of rolled products were shipped.
“In 2022, Zaporizhstal reduced the output of rolled steel by 60.4% to 1 million 304.3 thousand tons, steel by 61.7% to 1 million 491.3 thousand tons and cast iron by 54.3% to 2 million 9.9 thousand tons compared to 2021.
“Zaporizhstal” is one of the biggest industrial enterprises in Ukraine, which products are in great demand among the consumers on the internal market and in many countries of the world. The plant specializes in high-quality steel coils, hot-rolled plates, cold-rolled plates, cold-rolled coils from carbon and low-alloyed steels, as well as steel straps, tin plates, formed sections.
Main consumers are producers of welded pipes, enterprises of automotive, transport, agricultural engineering, producers of household appliances.
“Zaporizhstal is in the process of integration into Metinvest Group the main shareholders of which are CJSC “System Capital Management” (71.24%) and Smart Holding group of companies (23.76%).
Metinvest Holding LLC is the management company of Metinvest group.