REUTERS
The downward steel consumption trend is caused by the global economic crisis associated with the China-U.S. trade war.
Steel production in Ukraine shrank by 10% in September-October because of a decline in its consumption globally, according to Ukraine's Minprom news agency.
"Ukraine's export-dependent metallurgy –82.8% of metal products manufactured in Ukraine were sold on foreign markets in the nine months of this year, according to ETR-Spektr LLC – does not break the global trend. In October and September, the country's steel production fell by 10%," reads an article published by Minprom on November 14.
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Moreover, the downward steel consumption trend is observed worldwide due to the global economic crisis associated with the protracted trade war between China and the United States.
Steel production in Ukraine fell mainly because of a halt to production partly at Dniprovsky Metallurgical Combine and Dniprovsky Metallurgical Plant. Elektrostal-Kurakhovo (located in the town of Kurakhove, Donetsk region), which suspended production in September, also contributed to the reduction in domestic steel output.
"Having shut down part of its facilities, Dniprovsky Metallurgical Plant, which is part of businessman Oleksandr Yaroslavsky's DCH Steel Group, told [the public] a beautiful story about plans to invest US$300 million in upgrading of production. But first, the company needs to carry out 'research and repairs, which suggests the shutdown of some of its workshops.' At the same time, Dniprovsky Metallurgical Combine and Elektrostal-Kurakhovo openly announced that the halt was caused by an unfavorable situation in the metalware markets," the publication said.
Today, 350,000 people are employed in Ukraine's mining and metallurgical sector and steelmakers' revenue in foreign currency is estimated at about US$10 billion annually. That is, the national currency rate directly depends on their stable operation. So, further putting pressure on the industry can affect the country's economy, according to the article.