The results of the MMC of Ukraine in the first half of 2020 indicate an extension of the crisis in the Ukrainian metallurgical industry associated with the general situation in the global steel market since the third quarter of 2019, exacerbated by the COVID-19 coronavirus pandemic.
The main reasons for the decline in the production of the main types of metallurgical products, along with the global quarantine, are still state protectionism in traditional Ukrainian metallurgy export countries, lower prices and reduced demand for metal products, the presence of excess global steelmaking capacities in the amount of about 440 million tons per year. as well as the invariable “tariff lawlessness” on the part of the national state monopolists “JSC” Ukrzaliznytsia “, State Enterprise” Administration of the seaports of Ukraine “, Naftogaz, etc.) and a number of destructive legislative and regulatory acts (unjustified restrictions on the import of sulfuric acid, an increase in rent payments for the extraction of iron ore, an attempt to increase tariffs for the transmission of electricity, etc.), which were introduced by the Ukrainian government.
All this is acutely felt during the period of the global crisis, when the domestic metallurgy needs government support more than ever, first of all, in ensuring a stable and favorable tariff and tax field, providing high-quality service from state transport companies, creating conditions for expanding investments in the real sector. and the associated growth in metal consumption, as well as protecting the interests of Ukrainian producers in foreign and domestic markets.
Reference: The Ukrainian mining and metallurgical industry is a leading component of the industrial complex of Ukraine, which provides about 26% of foreign exchange earnings, 12% of GDP, more than 30 billion UAH of deductions to budgets of all levels (at the end of 2019) and more than 600 thousand jobs (including related industries).
In January-June 2020, metallurgical enterprises of Ukraine produced:
- agglomerate – 15,740,000 tons (99.6% compared to the same period in 2019)
- gross coke (6% vol.) -4810000 t (92.7%);
- pig iron – 9,980,000 tons (97.4%);
- steel – 10.10 million tons (92.4%);
- rolled stock – 9030000 tons (95.3%);
- pipe products – 0410000 tons (70.6%).