DUBLIN--(BUSINESS WIRE)--Research and Markets (http://www.researchandmarkets.com/research/d061db/ukraine_metals_rep) has announced the addition of the "Ukraine Metals Report Q2 2011" report to their offering.
Business Monitor International's Ukraine Metals Report provides industry professionals and strategists with independent forecasts and competitive intelligence on Ukraine's metals industry.
Ukrainian steel production growth will be more subdued in 2011 following strong growth last year, while cost pressures caused by the rising prices of gas and scrap will continue to erode margins. Ukraine's crude steel output totalled 33.56mn tonnes in 2010, up 12.8%, which was higher than the 32.60mn tonnes BMI had estimated. Finished steel production grew 9.0% to 29.20mn tonnes, pig iron was up 6.5% to 27.35mn tonnes and coke output rose 6.8% to 18.58mn tonnes.
While growth was strong, crude output was still 22% down on 2007 pre-crisis levels. At the same time, the metallurgical sector registered a total loss of UAH3.84bn (US$490mn), although losses were 60% down on the previous year. According to preliminary data, in the January-February period of 2011 Ukraine registered a 13% year-onyear (y-o-y) increase in its finished steel product output to 4.90mn tonnes and 9% growth in crude steel output to 5.54mn tonnes. BMI believes that, based on a decline in growth both in export and domestic markets, crude output will be around 36mn tonnes, representing growth of 7.2%, while hot-rolled output is set to rise 9.0% to 29.85mn tonnes.
Although BMI expects a full recovery in aluminium by 2015, this is dependent on RusAl maintaining its operations in Ukraine. Debt-ridden RusAl indicated even before the financial crisis that it may close the 130,000tpa Zaporizhsky Alyuminievy Kombinat (Zalk) smelter as it was unprofitable to keep it running due to high electricity prices. Output from the smelter has declined from 112,800 tonnes in 2008 to 50,000 tonnes in 2009 and just 25,000 tonnes in 2010. In January 2011, RusAl said that the loss-making plant could close permanently or sold off, but said a decision would be based on the Ukrainian government's decision on power tariffs. However, the new government of President Yanukovych has stated that it will maintain the policy of the previous government and refuse to cut prices for ZALK. Until RusAl announces that it will close Zalk, BMI forecasts a return to full capacity within five years.
Companies Mentioned:
- ArcelorMittal Kryviy Rih
- RusAl
- Azovstal
- Zaporizhstal
For more information visit http://www.researchandmarkets.com/research/d061db/ukraine_metals_rep