Production results of MMC of Ukraine for 7 months 2020

The results of the activities of the MMC of Ukraine for 7 months of 2020 indicate that the difficult situation in the Ukrainian metallurgical industry remains associated with the crisis in the global steel market, 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 the traditional Ukrainian metallurgy export countries, lower prices and reduced demand for metal products, the presence of surplus 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, 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 authorities.

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.
According to the updated data, in January-July 2020, metallurgical enterprises of Ukraine produced:

- agglomerate - 18520000 tons (100.6% relative to the same period in 2019)

- gross coke (6% vol.) -5,640,000 tons (94.2%);

- pig iron - 11,740,000 tons (98.7%);

- steel - 11,860,000 tons (93.2%);

- rolled products - 10,630,000 tons (96.9%);

- pipe products - 0470000 tons (71.5%).

As of mid-August 2020, of the main existing production facilities in operation: 18 of 21 blast furnaces, 6 of 8 open-hearth furnaces, 13 of 16 converters, 5 of 15 electric furnaces and 16 of 17 continuous casting machines.