13 Dec 2012 13:16

Ukraine aims to boost iron, steel production in 2013

DNIPROPETROVSK. Dec 13 (Interfax) - Ukrainian steel companies plan to produce 31 million tonnes of rolled products in 2013, 6.4% more than the target for 2012.

The general director of industry association Metallurgprom, Vasily Kharakhulakh said at a meeting of mining and metals industry representatives that the country is expected to increase crude steel production by 5.6% to 34.4 million tonnes and pig iron production by 4.6% to 29.9 million tonnes.

Production in January 2013 is expected to increase 4.2% from the December target to 2.76 million tonnes of crude steel, 6.3% to 2.52 million tonnes of rolled products and 5.8% to 2.54 million tonnes of pig iron.

Steel plants' January orders for limestone and iron ore products are being completely filled. Some of the demand will be covered with imports of 80,000 tonnes of sintering ore, 200,000 tonnes of concentrate and 20,000 tonnes of pellets.

Steel plants will also be fully supplied with coke in January. Based on expectations that about 1.3 million tonnes of Ukrainian coal will be delivered in January, about 750,000 tonnes of coking coal will have to be imported.

Ukrainian steel plants plan to produce 2.65 million tonnes of crude steel, 2.4 million tonnes of pig iron and 2.37 million tonnes of rolled steel products in December 2012.

Ukraine could cut steel roll output 8% this year to 29.107 million tonnes, the Economic Development and Trade Ministry has said.

Crude steel production could fall 6% to 32.571 million tonnes and pig iron - 1% to 28.488 million tonnes.

Steel pipe production could fall 4% to 2.125 million tonnes, coke - 3% to 19.093 million tonnes and hardware - 20% to 208,000 tonnes. Scrap metal supplies to Ukrainian steel mills might fall 27% to 4.928 million tonnes.

Crude iron ore production could fall drop 1% to 79.939 million tonnes, iron ore concentrate - 1% also to 66.405 million tonnes and sinter - 2% to 42.819 million tonnes, while iron ore pellet production might be level with last year at 22.427 million tonnes.

The ministry said the forecast was based on results for January-October and could change, depending on the market situation at home and abroad.

Metallurgprom's Kharakhulakh said crude steel production in Ukraine fell 7% year-on-year in January-November to 29.828 million tonnes and roll production - 8% to 26.69 million tonnes. Pig iron was down 1% to 26.171 million tonnes.

In November alone, the country produced 2.431 million tonnes of pig iron (81,000 tonnes a day), 2.687 million tonnes of crude steel (89,600 tonnes) and 2.422 million tonnes of roll (80,700 tonnes).

As of December 1, 27 of the country's 36 blast furnaces, 19 of its 21 converters, eight of its 16 open-hearths and five of its 15 electric furnaces were operating.

Steel mills received 450,000 tonnes of scrap in November, 93% of their estimated needs. They received 4.56 million tonnes in the 11M - 27% less than in the same period of last year and 85% of their requirement. Stockpiles grew 35,000 tonnes during November to around 160,000 tonnes of scrap.

Kharakhulakh also said Ukrainian coking plants imported around 10.44 million tonnes of raw coal and concentrate in the 11M, 10% more than a year previously. They imported 830,000 tonnes in November.

Supplies of Ukrainian coking coal fell 14% in the 11M to 13.75 million tonnes, including 1.2 million tonnes in November.

Coking plants received 24.2 million tonnes of coking coal altogether in the 11M, 5% less than in the same period of last year.

Coke inventory was unchanged from a month earlier at the end of November at 550,000 tonnes.

Coking plants shipped 13.12 million tonnes of coke to steel mills in the 11M, 3% less than in the same period of last year and 97% of the estimated requirement for coke. They shipped 1.14 million tonnes in November.