The steel output of Ukraine may double in 2023

Recently, the Ukraine Renewable Metals Association said that in 2022, the annual steel output of Ukraine will reach 6.5 million tons, down 69.5% year on year; The purchase of scrap steel will reach 930,000 tons, down 77.5% year on year. In 2023, the output of steel in Ukraine may reach 12 million to 12.5 million tons, the supply of scrap steel may reach 1.5 million to 1.6 million tons, and the export of scrap steel may reach 300000 to 320000 tons. The association said that this was a more optimistic forecast.

The more realistic prediction result is that in 2023, Ukrainian steel enterprises will produce 7 million to 7.5 million tons of steel, and the purchase volume of scrap steel is expected to reach 1.2 million to 1.25 million tons.

The Renewable Metals Association of Ukraine said: "The forecast of Ukraine's steel output in 2023 is based on the following conditions: the steel mills that will remain in operation as of December 1, 2022 will retain their production potential, the supply chain of raw materials will be complete and the energy supply will be sufficient. At the same time, the purchase volume of scrap steel in Ukraine in 2023 will depend on the price situation in the local market, fair pricing mechanism and the export opportunities of companies specializing in scrap steel procurement and processing. The export opportunities will continue to stimulate the development and operation of the Ukraine's scrap metal market. In addition, measures such as abolishing export tariffs and revising existing legislation can stabilize market prices, which will stimulate the increase in the purchase and supply of scrap steel. "

At the same time, the Ukraine Renewable Metals Association pointed out that due to the geopolitical conflict, a large number of infrastructures in Ukraine have been destroyed, including a large number of military equipment that need to be disposed after being destroyed, and the current amount of scrap steel in Ukraine has increased. "This material needs to be treated with special technology and equipment, which means higher costs. Now it is estimated that the total amount of such scrap in Ukraine is 120 million tons to 150 million tons."