Metallurgical enterprises in Ukraine have forecast a decline in their crude steel production by 7pc in 2020 from the earlier forecast of 21.5mn mt. Total crude steel production is estimated to fall to 20mn mt from 20.848mn mt produced in 2019.
Ukrainian Association of Secondary Metals (UAVtormet) estimates the country will require a lesser volume of ferrous scrap in 2020 to meet their crude steel production requirements. Scrapprocurement is estimated to decrease by 18.2pc from 2019 to 2.75mn mt, largely driven by lower domestic collection rate. Usage is expected to fall by 10.2pc.
The association, however, has raised its 2020 outlook for ferrous scrap exports from Ukraine to around 50,000mt from 42,200mt last year, an 18pc rise. Ukrainian imports of ferrous scrap are expected to reach around 50,000mt in 2020, up from 49,900mt from the prior year.
Increase in ferrous scrap & semi-finished steel exports
According to world steel association, Ukraine’s steel production declined by 9.5pc to 6.731mn mt in Jan-April 2020. Ferrous scrap exports in the period dropped by 59.1pc to 11,600mt while imports dropped by 74.6pc to 5,700mt. Scrap procurement fell by 10.2pc to 958,300mt.
Turkey’s lower demand pressured domestic ferrous scrap prices in Ukraine. Most sellers are likely to supply more volumes in the export market as global prices are presently attractive despite higher export duties than domestic ferrous scrap prices.
In Jan-April, ferrous scrap exports from Ukraine amounted to $2.7bn, a drop of 15.5pc from the prior year. Earlier, global ferrous scrap prices declined amid COVID-19 outbreak and resulting economic slowdown in the world. Exports of semi-finished steel increased, revenue generates from these sales fell by 3.4pc to $955.9mn.