Ukrainian steelmakers reduced output of crude steel in September, but year-to-date output continues to rise steadily, show preliminary data from metals association Ukrmetallurgprom.

The country's ferrous sector produced 1.76 million tonnes of crude steel in September, -9.2% less than in August, but in the first three quarters of the year Ukrainian crude steel output rose 4% on-year to 16.4mt. The pace of increase slowed from 5% on-year growth in January-August.

September saw Ukrainian steelmakers produce 1.75mt of pig iron, down -4.6% on-month, but in January-September this was still up 1% to 15.5mt. Saleable products output increased both in September and the first nine months, by 3% and 2% respectively to 1.6mt and 14.1mt. 

The export-orientated Ukrainian ferrous industry is feeling the pinch from softening sentiment in all its major export markets. A major vertically-integrated producer already reduced billet output at one of its mills, while another mill is also reducing billet output significantly as it is implementing planned upgrades, Kallanish notes.

Ukraine's exports of steel products rose in January-August, led by semi-finished products. The country exported 10.6mt of steel products during the period, 5.5% up on-year, with semis exports totalling 5mt, representing 46% of all exports. Europe remained Ukraine's largest export market with 35% of all imports, followed by the Middle East and North Africa with 30%.

Ukraine’s domestic consumption, however, fell by -10% in January-August to around 2.8mt, with an increased share of imports in domestic consumption. Semis imports increased by 21% on-year to 34,500t in January-August, with the CIS remaining the largest supplier to Ukraine with a 51% share, followed by Asia with 19% and the EU with 18%.