The basis of the economy of Ukraine are metallurgy, agricultural industry, energy and engineering. At the same time, the main export sectors that provide the country with foreign exchange earnings are metallurgy and the agro-industrial complex.
The production of iron and steel by metallurgical enterprises of Ukraine has decreased during the last years. According to the association “Ukrmetallurgprom”, in 2017, pig iron production amounted to 14.6 million tons, which is 18% less than in the same period of 2016. About 15.8 million tons of steel were produced (14% less than in 2016), and roughly 13.5 million tons of rolled products (16% less).
According to the association, the production of the main types of metal products in September 2017 amounted to: pig iron – 1.85 million tons (+ 5% by August), steel – 1.93 million tons (+ 4%), rolled products – 1.66 million tons ( + 7%).
In 2017, Ukraine got the twelfth place in the world steel manufacturers ranking of steel, with the total amount of 22.7 million of produced steel, which is 6.4% less comparing to 2016. Couple of years ago, in 2013, Ukraine occupied the 7th position in the world, producing more than 30 million tons of steel.
Compared to 2007, the production of pig iron decreased by 15 million tons (-43%), steel – by 21 million tons (-50%) and rolled products – by 20 million tons (-50%), which corresponds to the level of production 1995-1996 years.
In October 2018 steel production in Ukraine was reduced by 6.7% compared to output levels of the previous year. Eventually, in the rating of steel-producing countries, in September 2018 Ukraine dropped from 12th to 13th place. In 2018, roughly 17.600 million tons of steel were produced in Ukraine during the stretch of ten months.
Top largest Ukrainian steel companies:
The first place was taken by the metallurgical holding “Metinvest”, the second position went to the energy company “DTEK”, the mining and metallurgical giant “AMKR” closes the top three. Also in the ranking were such companies as Motor Sich, Nibulon and Kernel.
The total income of these ten holdings in 2017 amounted to 660 billion hryvnia, or 22% of the country’s GDP. Hundreds of thousands of Ukrainians are employed at these enterprises, the media reports.
Earlier it was announced that the volume of industrial production in Ukraine in September fell by 1.3% compared with the same month last year. At the same time, in August, the State Statistics Service reported a decline in industrial production by 0.5%.
The profile association of metallurgists cites the main reasons for the fall in the industry:
– Problems at “Ukrazalіznitsya”: shortage of cars and locomotives, insufficient railway carrying capacity to Mariupol and in the ports of Odessa;
– fluctuations in prices for metal products and iron ore concentrate due to a surplus of capacity on a global scale;
– personnel shortage – outflow of qualified specialists to the EU countries;
– US protective measures for steel products and the European Union for hot rolled coils.