Abstract
In the Ukraine, rather large capacities on output of steel and rolled steel are available. The country the 8th greatest producer of steel and 5th of iron in the world. The country exports up to 80% of production volume of its ferrous metallurgy, including the whole range of the sector products: iron ore, iron, ferroalloys, billet, slabs, skelp for pipes, rebar, wirerod, sections, HR and CR flat steel in coils and sheets, pipes6 metalware articles, coated steel, etc.
Share of Ukraine in ferrous metallurgy production of the CIS is very high: Ukraine yields 37% of total CIS iron, 34% of CIS steel and 27% of CIS rolled steel.
Ferrous metallurgy is basic sector of Ukrainian economy. It includes above 150 enterprises, including 16 mining and concentrating enterprises, 14 metallurgical combines and plants, 7 pipe plants, 10 metalware plants, 16 coal-tar chemical plants, 17 refractory plants, 3 ferroalloys plants, 23 secondary ferrous metals enterprises, as well as machine building, repair and engineering enterprises.
Notice that, in the Ukraine, a share of ferrous metallurgy in industrial output of the country is the greatest among countries of the former USSR, around 25%; the sector gains above a third of the country export receipts in hard currency.
Current standing of Ukrainian ferrous metallurgy is characterised by imperfect structure and lag in technology from developed countries and even Russia. For instance, in Ukraine, 43% of steel is produced by open-hearth rout, and only 34% is cast continuously. Range and shares of products of Ukrainian ferrous metallurgy are inconsistent with world market demand. This Ukrainian sector requires radical modernisation and reconstruction, as well as optimising structure of range of final products. Productive assets are worn and obsolete: by the end of 2006, depreciation of facilities operating exceeded 60% (including 54% depreciation of coke-oven batteries, almost 90% of available blast furnaces, open hearth furnaces and rolling mills; 26%-depreciation of converters,), and the completely depreciated facilities yield above a half of the country steel products.
In this case, Ukrainian government attempts to improve the situation by giving various preferences, tax credits to metallurgical companies, decreasing duties and tariffs for them. For instance, from mid-1999 to the end of 2001, a large-scale experiment was conducted in Ukrainian metallurgy: giving considerable tax and other privileges to the sector enterprises to overcome crisis in the sector. The experiment allowed to restore partially working capital of the enterprises and to begin their modernization. For instance, in 2000, the sector yielded 27% of Ukrainian GDP and 46% of export receipts.
Nevertheless, improving standing of Ukrainian steelmakers, appeared, first of all, in increasing production volume, is connected, with privatisation of most of companies, that resulted in arising more effective owners and growth of investments in production reconstruction. This refers, first of all, to Arcelor Mittal Krivoi Rog (AMKR, former Krivorozhstal until 2006), which expands its production and presence at domestic and world market, as well as Metinvest Holding (managing metallurgical assets of SCM) and Industrial Union of Donbas (ISD).
Currently processes of re-distribution of assets is in progress in mining-metallurgical industry of Ukraine: Metinvest Holding strengthens its positions; Russian holdings also penetrate into the market, for instance, EvrazGroup.
Table of Contents
Part I. Standing of Ferrous Metallurgy of the Ukraine
Introduction
- 1.1 Production, capacity utilisation.
- 1.2 The greatest Ukrainian Steelmakers
- 1.3 Financial Standing
- 1.4 Provision with raw materials.
- 1.4.1 Iron ore resources.
- 1.4.2 Iron.
- 1.4.3 Scrap and wastes.
- 1.5 Restructuring and privatization of Ukrainian ferrous metallurgy
- 1.6 The main export markets of Ukrainian steelmakers
- 1.7. Antidumping probes and investigations against Ukrainian steelmakers
- 1.8. Domestic Consumption of Steel and Rolled Steel
- 1.9. The main domestic end-uses of Ukrainian rolled steel
- Production of pipes and metalware
- Metalware
- Machine building
- Motor industry
- Building industry and building materials industry
- Railway sector
- 1.10 Pricing and prices on products of Ukrainian ferrous metallurgy.
- 1.11. Forecast of production and consumption of crude and finished steel in Ukraine
Part II. Standing of the Main Ukrainian Steelmaking Enterprises
- 2.1 Arcelor Mittal Krivoi Rog
- General information
- The enterprise structure, capacities, range of products
- Production output and tendencies of the combine development
- Sources and suppliers of raw materials
- Domestic market
- Exports
- Competitiveness
- A program of Krivorozhstal development and investments
- Ecology
- Financial standing
- Privatization and ownership
- Appendix
- The main productive facilities and their characteristics
- Range of products and their characteristics
- Harmonized Commodity Description And Coding System (Russian)
- Statistics of rolled steel exports (broken by products) by the combine Arselor Mittal Krivoi Rog in 2001, broken by countries, kt
- Statistics of rolled steel exports (broken by products) by the combine Arselor Mittal Krivoi Rog in 2002, broken by countries, kt
- Statistics of rolled steel exports (broken by products) by the combine Arselor Mittal Krivoi Rog in 2003, broken by countries, kt
- Statistics of rolled steel exports (broken by products) by the combine Arselor Mittal Krivoi Rog in 2004, broken by countries, kt
- Statistics of rolled steel exports (broken by products) by the combine Arselor Mittal Krivoi Rog in 2005, broken by countries, kt
- Statistics of rolled steel exports (broken by products) by the combine Arselor Mittal Krivoi Rog in 2006, broken by countries, kt
- 2.2 Mariupol Ilyich Integrated Iron-and-Steel Works
- General information
- The enterprise structure, capacities, range of products
- Blast furnace production
- Steelmaking production
- Rolling production includes:
- Production volume and tendencies of the combine development
- Resources suppliers
- Domestic market
- Competitiveness
- Exports
- A program of Mariupol Ilyich development and investments
- Financial standing
- Privatization and ownership
- Personnel, social responsibility
- Appendix
- Range of products and their characteristics
- Products of rolling plants
- Price-list
- Statistics of rolled steel exports (broken by products) by the combine Mariupol im. Ilyich in 2001, broken by countries, kt
- Statistics of rolled steel exports (broken by products) by the combine Mariupol im. Ilyich in 2002, broken by countries, kt
- Statistics of rolled steel exports (broken by products) by the combine Mariupol im. Ilyich in 2003, broken by countries, kt
- Statistics of rolled steel exports (broken by products) by the combine Mariupol im. Ilyich in 2004, broken by countries, kt
- Statistics of rolled steel exports (broken by products) by the combine Mariupol im. Ilyich in 2005, broken by countries, kt
- Statistics of rolled steel exports (broken by products) by the combine Mariupol im. Ilyich in 2006, broken by countries, kt
- 2.3 Azovstal Integrated Iron-and-Steel Works
- General information
- The enterprise structure, capacities, range of products
- Production output and tendencies of the combine development
- Suppliers of resources
- Competitiveness
- Exports
- Domestic market
- A program of Azovstal development and investments
- Financial standing
- Privatization and ownership
- Personnel, Wages, Social Responsibility
- Appendix
- The main productive facilities and their characteristics
- Range of products and their characteristics
- Statistics of rolled steel exports (broken by products) by the combine «Azovstal» in 2001, broken by countries, kt
- Statistics of rolled steel exports (broken by products) by the combine «Azovstal» in 2002, broken by countries, kt
- Statistics of rolled steel exports (broken by products) by the combine «Azovstal» in 2003, broken by countries, kt
- Statistics of rolled steel exports (broken by products) by the combine «Azovstal» in 2004, broken by countries, kt
- Statistics of rolled steel exports (broken by products) by the combine «Azovstal» in 2005, broken by countries, kt
- Statistics of rolled steel exports (broken by products) by the combine «Azovstal» in 2006, broken by countries, kt
- 2.4 Zaporozhstal Integrated Iron-and-Steel Works
- General information
- The enterprise structure, capacities, range of products
- Production and tendencies of its development
- Sources and suppliers of raw materials
- Competitiveness
- Domestic market
- Exports
- A program of Zaporozhstal development and investments
- Financial standing
- Credits
- Environmental measures
- Social responsibility
- The Works personnel
- Privatization and ownership
- Appendix
- The main productive facilities and their characteristics
- Range of products and their characteristics
- Statistics of rolled steel exports (broken by products) by the combine «Zaporozhstal» in 2001, broken by countries, kt
- Statistics of rolled steel exports (broken by products) by the combine «Zaporozhstal» in 2002, broken by countries, kt
- Statistics of rolled steel exports (broken by products) by the combine «Zaporozhstal» in 2003, broken by countries, kt
- Statistics of rolled steel exports (broken by products) by the combine «Zaporozhstal» in 2004, broken by countries, kt
- Statistics of rolled steel exports (broken by products) by the combine «Zaporozhstal» in 2005, broken by countries, kt
- Statistics of rolled steel exports (broken by products) by the combine «Zaporozhstal» in 2006, broken by countries, kt
- 2.5. JSC Dneprovsky Integrated Iron&Steel Works named after Dzershinsky
- General information
- Structure, capacities, range of products
- Output of products and tendencies of development
- Sources and suppliers of raw materials
- Domestic market
- Export
- Competitiveness
- The program of DMK im. Dzerzhinsky development and investments
- Financial results
- Personnel
- Privatization and ownership
- Appendix
- The main productive facilities and their characteristics
- Range of products and their characteristics
- Statistics of rolled steel exports (broken by products) by the combine DMK im. Dzerzhinsky in 2001, broken by countries, kt
- Statistics of rolled steel exports (broken by products) by the combine DMK im. Dzerzhinsky in 2002, broken by countries, kt
- Statistics of rolled steel exports (broken by products) by the combine DMK im. Dzerzhinsky in 2003, broken by countries, kt
- Statistics of rolled steel exports (broken by products) by the combine DMK im. Dzerzhinsky in 2004, broken by countries, kt
- Statistics of rolled steel exports (broken by products) by the combine DMK im. Dzerzhinsky in 2005, broken by countries, kt
- Statistics of rolled steel exports (broken by products) by the combine DMK im. Dzerzhinsky in 2006, broken by countries, kt
List of Tables:
- Table 1: Production capacity of Ukrainian metallurgical enterprises, broken by routs of steelmaking, kt
- Table 2: Ukrainian crude steel production in 1999-2006, broken by routs, kt
- Table 3: Production of the main types of rolled steel in Ukraine in 2000-2006, (mln t).. 13
- Table 4: Availability of capacities on production of various steel products at Ukrainian enterprises
- Table 5: Production of flat and long steel* in Ukraine in 2006, kt
- Table 6: Steel and rolled steel production of Ukrainian enterprises, kt
- Table 7: Parameters of effectiveness of steel production in Ukraine of the greatest steelmakers (steel output per 1 employee, t/employee) in 2000-2006
- Table 8: Financial results of main Ukrainian steelmakers in 2006 (bln UAH)
- Table 9: Iron production of Ukrainian enterprises in 1992-2006, kt
- Table 10: Ukrainian iron exports in 2001-2006, kt
- Table 11: Iron scrap supply to Ukrainian metallurgical enterprises* in 2000-2006, kt
- Table 12: Ukrainian ferrous scrap exports in 2001-2006, kt
- Table 13: Privatisation of the main assets in Ukrainian ferrous metallurgy
- Table 14: Ukrainian Ferrous Metals Exports in 2001-2006, kt
- Table 15: The greatest Ukrainian exporters of ferrous metallurgy products in 2006, kt
- Table 16: The greatest country-importers of Ukrainian steel products in 2002-2006, kt
- Table 17: Actual consumption of rolled steel in Ukrainian industrial sectors in 2001-2006, kt
- Table 18: Metalware output by the greatest Ukrainian producers for 2001-2006, kt
- Table 19: Output of the main type of high-steel-consuming industrial products in Ukraine in 1992-2005
- Table 20: Growth of wholesale prices on industrial products in Ukraine in 1995-2006 (times compared with previous year)
- Table 21: Rates of freight railage tariffs growth (broken by products, in 2002-2006 (%, y-o-y)
- Table 22: Average annual export prices for the main types of Ukrainian rolled steel in 1996-2006, USD/t
- Table 23: Forecast of production of the main kinds of ferrous metallurgy products in Ukraine up to 2012, mln tonnes
- Table 24: Forecasted supply-demand balance of rolled steel in Ukraine up to 2012, mln tonnes
- Table 25: Output of the main products of Krivorozhstal by years, kt
- Table 26: Supplies of Ukrainian iron ore resources to «Krivorozhstal» in 2001-2006, kt
- Table 27: Import supplies of coal to JSC «Krivorozhstal» in 2001-2006, kt
- Table 28: Domestic prices on rolled steel of «Krivorozhstal' » in 2002-2003, exclusive of VAT, UAH/t
- Table 29: Domestic prices on rolled steel of «Krivorozhstal' » in 2004-2007, exclusive of VAT, $/t
- Table 30: Structure of Krivorozhstal exports in 1997-2006, %
- Table 31: Share of exports in total rolled steel production of Krivorozhstal
- Table 32: Average export prices of Krivorozhstal' products in 2001-2006, $/t
- Table 33: Financial results of Krivorozhstal' in 2001-2006, million UAH
- Table 34: Output of the main products at Mariupol Mariupol Ilyich combine by years in 1997-2006, kt
- Table 35: Coke and coal imports of «Mariupol Ilyich» in 2001-2006, kt
- Table 36: Supplies of iron ore resources to «Mariupol Ilyich» in 2001-2006, kt
- Table 37: Supplies of iron ore resources to Mariupol Ilyich from Russia in 2001-2006
- Table 38: Mariupol Mariupol Ilyich Iron and Steel Works imports of zinc in 2001-2006
- Table 39: Domestic price on rolled steel of Mariupol Ilyich in 2004-2005 exclusive of VAT, $/tonne
- Table 40: Domestic price on rolled steel of Mariupol Ilyich in 2006 exclusive of VAT, UAH/tonne
- Table 41: Domestic price on rolled steel of Mariupol Ilyich in 2007 exclusive of VAT, UAH/tonne
- Table 42: Share of exports in rolled steel output of Mariupol Ilyich in 1997-2006
- Table 43: Exports structure of Mariupol Ilyich combine in 1997-2006, %
- Table 44: Annual average export prices on Mariupol Ilyich products for 2001-2006, $/t
- Table 45: Financial results of Mariupol Ilyich Combine in 2001-2006, thousand UAH
- Table 46: Output of the main ferrous metallurgy products at Azovstal combine by years, thous. tonnes
- Table 47: Imports of coking coal by Azovstal in 2001-2006, kt
- Table 48: Supplies of iron ore resources to Azovstal in 2001-2006, kt
- Table 49: Imports of iron ore resources by Azovstal in 2001-2006, kt
- Table 50: Imports of ferroalloys by Azovstal in 2001-2006, t
- Table 51: Share of exports in total production of Azovstal rolled steel
- Table 52: Exports structure of Azovstal combine in 1997-2006, %
- Table 53: Average annual export prices on Azovstal steel in 2001-2006, $/t
- Table 54: Financial results of Azovstal in 2001-2005, million UAH
- Table 55: JSC Azovstal personnel in 2001-2006
- Table 56: Output of the main products of Zaporozhstal in 1997-2006, kt
- Table 57: JSC «Zaporozhstal» imports of coke and coal in 2001-2006 kt
- Table 58: Supplies of iron ore resources to «Zaporozhstal» in 2001-2006, kt
- Table 59: Table 4: Supplies of iron ore resources from Russia to JSC «Zaporozhstal» in 2001-2005, kt
- Table 60: Geographic pattern of domestic sales of JSC «Zaporozhstal» in 2002-2006, %
- Table 61: Pattern of Zaporozhstal domestic sales, broken by end-uses (branches of industry) (share in Zaporozhstal sales, %)
- Table 62: Domestic prices on «Zaporozhstal» rolled steel in 2004-2005 exclusive of VAT, UAH/tonne
- Table 63: Domestic prices on «Zaporozhstal» rolled steel in 2006 exclusive of VAT, $/tonne
- Table 64: Domestic prices on «Zaporozhstal» rolled steel in 2007 exclusive of VAT, UAH/tonne
- Table 65: Share of exports in total production of rolled steel by Zaporozhstal
- Table 66: Exports structure of Zaporozhstal combine in 1997-2006, %
- Table 67: Average annual export prices on «Zaporozhstal» steel products in 2001-2006, $/tonne
- Table 68: Investment projects of JSC Zaporozhstal
- Table 69: Financial results of Zaporozhstal in 2001-2005, million UAH
- Table 70: Data on Zaporozhstal personnel in 2001-2006
- Table 71: Dynamics of Dneprovsky Integrated Iron&Steel Works named after Dzershinsky production in 2001-2006
- Table 72: Imports of coal and coke by DMK im. Dzerzhinsky in 2002, kt
- Table 73: Supplies of iron ore resources to DMK im. Dzerzhinsky in 2001-2006, kt
- Table 74: DMK im. Dzerzhinsky imports of iron ore resources from Russia in 2001-2004
- Table 75: Domestic prices on rolled steel of DMK im. Dzerzhinsky in 2004-2006 exclusive of VAT, UAH/t
- Table 76: Domestic prices on rolled steel of DMK im. Dzerzhinsky in 2007 exclusive of VAT, UAH/t
- Table 77: Share of exports in production volume of DMK im. Dzerzhinsky
- Table 78: Pattern of exports of «DMK im. Dzerzhinsky» in 2002-2006 from data of Ukrainian State Committee on Statistics, %
- Table 79: Pattern of exports of «DMK im. Dzerzhinsky» in 2002-2006 from data of Ukrainian railage statistics, %
- Table 80: Exports of other products of DMK im. Dzerzhinsky
- Table 81: Average annual export prices on rolled steel of DMK im. Dzerzhinsky in 2001-2006, $/t
- Table 82: Financial results of DMK im. Dzerzhinsky in 2000-2006, mln UAH
- Table 83: Staff and salary at DMK Dzerzhinsky
List of Figures:
- Figure 1: Steel and rolled steel production in Ukraine*, kt
- Figure 2: Continuously cast steel production in Ukraine, mln t
- Figure 3: Location of the largest Ukrainian steelmakers
- Figure 4: Pattern of crude and rolled steel production in Ukraine (broken by producers) in 2005 and 2006
- Figure 5: Ukrainian output of iron in 1992-2006
- Figure 6: Structure of key assets of Metinvest Holding Group
- Figure 7: Average monthly exports of Ukrainian flat-rolled steel, kt
- Figure 8: Ukrainian Pipe Production in 1995-2006 (kt)
- Figure 9: Average monthly dynamics of metalware production and apparent wirerod consumption in Ukraine in 2004-2007, kt
- Figure 10: Monthly dynamics of Ukrainian imports of coated sheet in 2006, kt
- Figure 11: Average annual electric power prices in 1992-2007, $US/kWh
- Figure 12: Dynamics of average monthly export prices on Ukrainian rolled steel in 2006-2007, USD/t
- Figure 13: Dynamics of average monthly prices on Ukrainian CR sheet in 2005-2007, $/tonne exclusive of VAT
- Figure 14: The scheme of metallurgical manufacture of Mariupol Ilyich Integrated Iron-and-Steel Works
- Figure 15: Flowsheet of JSC Zaporozhstal production
