Ukraine's metals sector will see modest growth over the forecast period, with a handful of new projects to increase production growth. Production will not return to pre-crisis highs, however, due to global overcapacity and steel prices not making substantive gains over 2013. There are no major expansions on the cards, and no major players in either the aluminium or steel industries have announced substantial investment plans.
Figures recorded at the start of 2014 have been disappointing. Ukrainian companies manufactured 477,000mt of steel pipes during January-April 2014, according to figures released by Ukraine's cabinet of ministers. The steel pipe production was down 16.1% year-on-year (y-o-y), the figures revealed. The country's steel pipe production was recorded as 140,600mt in April 2014, up 3.6% month-on-month (m-o-m), according to the official figures. This does not bode well for the country's near-term outlook and for Ukraine's attempts to hit production targets, which BMI is predicting to increase y-o-y in 2014 and in each consecutive year through to the end of our forecast period in 2018.
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According to Metinvest, overall domestic steel consumption by industrial companies was estimated to have fallen by 3.08% y-o-y over 2013, to 6.3mn tonnes. Steel consumption among small domestic consumers was expected to remain stable, at 2.6mn tonnes. Metinvest forecasts that Ukrainian industrial steel consumption will increase in 2014, reaching 6.6mn tonnes by year-end. This is below BMI's forecast of a 3.1% y-o-y increase in consumption to 7,966mnt by the 2014 year-end. We are also forecasting production to rise by 3.5% y-o-y to 34,948mnt as of the same date.
According to the Ukrainian association of steel producers Metallurgprom, crude steel production in Ukraine will total 2.45mnt in June 2014, pig iron output will total 2.35mnt, while Ukrainian production of rolled steel is expected to amount to 2.2mnt.
The Ukraine Metals Report has been researched at source, and features latest-available data for steel, aluminium and other major globally-traded commodities. Our analysis covers all primary indicators, including production, exports and price, with our forecasts underpinned by Business Monitor International (BMI)'s macroeconomists global economic outlook. The report analyses trends and prospects and critically evaluates latest industry news, trends and regulatory developments in Ukraine.
BMI's Ukraine Metals Report provides industry professionals and strategists, sector analysts, business investors, trade associations and regulatory bodies with independent forecasts and competitive intelligence on the metals industry in Ukraine.
Key Benefits
* Benchmark BMI's independent metals industry forecasts for Ukraine to test other views - a key input for successful budgeting and strategic business planning in the Ukraine metals market.
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Now Available: Ukraine Metals Report Q3 2014
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Contact Name: Bill Thompson
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Contact Phone: 1-413-485-7001
Contact Name: Bill Thompson
Contact Email: press@fastmr.com
Contact Phone: 1-413-485-7001