Following the war, Ukrainian metallurgy is finished off by the collapse of world prices
Kyiv, December 24 (PolitNavigator, Alexander Semenyuta) - Ukrainian metallurgy is in a deep crisis, and not only because of the fighting in the Donetsk and Lugansk regions. But until recently, the industry for many years was considered the largest exporter of Ukraine and ensured the flow of foreign currency into the state budget.
The Ukrainian agency Liga writes about this.
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In August, iron and steel production fell by 37% year-on-year, and coke production fell by more than half. By November, production indicators had improved slightly: the year-on-year decline was 28-36% (the worst dynamics were in coke production). But by this time the industry had received a new blow - a sharp reduction in prices for rolled steel.
The first three quarters of 2014, the price of metal products exported from Ukraine was relatively stable.
However, September presented an unpleasant surprise in the form of a sharp collapse in quotations. Since the beginning of autumn, a ton of rolled metal has fallen in price by $87-110, or 17-21%, depending on the type of product. By the beginning of December, Ukrainian square billet already cost less than $400 per ton - some manufacturers admitted that this was practically the level of the cost of goods.
Today, 1,3 million tons of rolled steel are exported from Ukraine every month, that is, due to the recent decline in prices, the country is additionally losing over $100 million in foreign exchange earnings per month.
Ukrainian metallurgy is being hit by a collapse in global prices following the war.