Ukrainian steel output drops 8% in February; NEGATIVE
Figure 1: Ukrainian monthly steel output, kt
Dec-09
Jan-10
Feb-10
mom, %
2m, yoy, %
Daily output, kt
88.1
90.8
83.9
-8%
Enakievo MP
207
206
191
-7%
-1%
Azovstal
476
487
439
-10%
84%
Alchevsk MP
254
255
220
-14%
-22%
Total
2731
2723
2348
-14%
14%
Growth rate, %
2.2%
-0.3%
-13.8%
Capacity utilization,%
69%
70
%
65
%
Source: Interfax, Metal Courier
Metal Courier
reports that Ukrainian daily average steel output declined 8% m-o-m in February owing to fewer days in the month, bad weather and a shortage of raw materials. Total steel output in February dropped 14% m-o-m. We calculate that capacity utilization declined from 70% in January to 65% in February. Most steel companies are seeing a recovery in production and expect steel products deliveries to increase 10-20% in March.
