Ukraine Metals Industry Update Quarter 3 2011

$ 1 088 - June 2013 - by Business Monitor International - 44

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Ukraine's metal sector will see modest growth over the coming years, with a handful of new projects set to
push production growth higher. However, production will not return to its pre-crisis highs as we expect steel
prices to remain relatively low by historical standards and global overcapacity to remain. These two factors
will disincentivise significant expansions. Indeed, none of the major players in either the aluminium or steel
industries have announced substantial investment in Ukraine.
The figures from the start of 2013 have certainly been disappointing. During the first four months of the
year Ukraine registered a 2.5% increase in its finished steel production output, to 9.280mn tonnes, a 0.6%
fall in its crude steel output to 11.058mn tonnes and a 0.7% rise in its pig iron production to 9.760mn
tonnes, according to data issued by Ukraine's Cabinet of Ministers. This does not bode well for the nearterm
outlook and for Ukraine's attempts to hit its production targets this year.

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