Another drop in steel production in Ukraine in May 2017

As a rule, in May, Ukrainian metallurgists smelted the largest amount of steel. It was in May that the annual highs in steel production in Ukraine were always observed, but May 2017 brought the country the greatest disappointment. The rate of decline in the industry has sharply increased and repeated the simply murderous April.

Ukrainian enterprises of the mining and metallurgical sector in January-May 2017 reduced steel production, according to operational data, by 18% compared to the same period in 2016 - to 8.708 million tons. Production of general rolled products for five months decreased by 20% - to 7.458 million tons, pig iron - by 22%, to 7.921 million tons, Interfax-Ukraine reports.

At the same time, the purely May drop in relation to the same period last year amounted to more than 23.8% for steel, 37.5% for cast iron, and 36% for rolled products.

It is impossible to explain this only by the blockade of Donbass. The enterprises of the industry, located far from the battle zone, instead of compensating for the dropped volumes, also reduce their production. For example, Zaporizhstal also slowed down in May:

The metallurgical plant Zaporizhstal in May 2017 reduced steel production by 11.2% compared to the same month last year, to 325.2 thousand tons. The press service of the enterprise reports. Pig iron production at the enterprise decreased by 17.1%, to 285.5 thousand tons, and rolled products - by 12.3%, to 272 thousand tons.

For reference: from January to May 2017, 1393.6 thousand tons of pig iron (-8.5%), 1586.8 thousand tons of steel (-3.3%), 1327.8 thousand tons of rolled steel (-8, four%).

Obviously, this will lead to a drop in industry as a whole, transport. There is also a decrease in metal consumption in construction, which will probably show a further slowdown in the growth rate of the industry and its possible exit to minus at the end of 2017.

In general, yesterday's statement by Vladimir Groisman that he will find growth drivers compensating for the fall is still unfounded.

“Ukraine has lost 1% of GDP due to the coal blockade. But we will find a solution to keep growing. However, no one gave up. And therefore, the task of the government today is to create conditions for a strong economy. Decent work, decent salary, competitive product - these are the tasks that we face ”.