Eva Antonenko
15 June 2022 14: 00
Headings: News Economy

They didn’t even reach 20% of last year’s figures: how the war affected Ukrainian metallurgy

Meanwhile, the "DPR" said that "Azovstal", most likely, will not be restored.

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They didn’t even reach 20% of last year’s figures: how the war affected Ukrainian metallurgy

According to the State Tax Service, one of the key drivers of the Ukrainian economy before the war was agriculture, mining and metallurgy, which historically was and still remains one of the key components of the processing industry in Ukraine - even after a crushing blow to it in 2014. Throughout 2021, the industry experienced a boom, increasing revenue from the export of ferrous metals by 81,4%. – to $13,96 billion, compared to $7,69 billion in 2020.

At the same time, the industry, so profitable for the State budget, is now in a critical situation due to the war.

Large-scale subsidence of the industry

On According to "Ukrmetallurgprom", in the metallurgical industry of Ukraine for the first 5 months of 2022 produced:

  • pig iron 4,15 million tons (46,7% compared to January-May 2021);
  • steel 4,24 million tons (47,2%);
  • rolled products 3,79 million tons (47,3%).

They didn’t even reach 20% of last year’s figures: how the war affected Ukrainian metallurgy - photo 1

It is worth noting that the war in Ukraine mainly hit the metallurgical enterprises located in eastern Ukraine, where either active hostilities are now taking place, or Ukraine has lost control of the territories.

What's happening in the industry commented Head of the Council of the Federation of Metallurgists of Ukraine Sergey Belenky.

According to an industry expert, in the first 5 months of 2022, production volumes in the industry fell by more than half compared to the corresponding period last year. In May 2022, the indicators did not even reach 20% of the indicators in May 2021.

Belenky noted that two large metallurgical plants in Mariupol - Azovstal and the Iron and Steel Works named after. Ilyich - no access today: “They were mothballed in compliance with all technological requirements. As for the extent of their damage, it is now impossible to say anything. When there is access to the enterprises, the technical experts will then be able to assess the scale of the destruction that has experienced them. ”.

Together, these two plants accounted for 40% of steel production in Ukraine. At the same time, the metallurgy of Ukraine continues to work, although far from being at full capacity.

“Today, Zaporizhstal, a metallurgical plant in Kamensky, and a Dnepropetrovsk metallurgical plant are operating. Gradually starts production and Krivoy Rog. That is, we are talking about four main metallurgical plants. There are also enterprises of the company Interpipe - Dneproprostal, enterprises producing pipe products., - he said.

Belenky recalled that now Metinvest's lawyers are preparing serious lawsuits against Russia in connection with the destruction of the production facilities of the enterprise in Mariupol and regarding the export of finished products.

It is also worth emphasizing here that many industry experts note: after the end of the war, the metallurgical industry will become the driver of economic recovery in Ukraine due to the increased demand for steel structures.

The "DPR" does not want to restore "Azovstal"

According to the head of the "DPR" Denis Pushilin, the Azovstal metallurgical plant was the main source of pollution in Mariupol, and its work allegedly led to oncological diseases among the local population, and therefore the enterprise, most likely, will not be restored.

He also believes that Mariupol as a resort town was hampered by the presence of manufacturing enterprises. And if the Ilyich plant, as Pushilin believes, was created taking into account the recommendations of environmentalists, the environmental friendliness of Azovstal raised questions from local residents.

“In fact, Azovstal was the main polluter of the city of Mariupol, and taking into account the fact that it was built contrary to the opinions of environmentalists, without taking into account the wind rose, it polluted both the city itself and the sea. Based on the position of the residents of Mariupol and relying on this position, we will make the final decision on whether we will restore Azovstal or not.”, - he said.

We also wrote about how entrepreneurs can get up to 20 thousand hryvnias of financial support, and told that despite the sanctions, the Russian Federation began to earn more on the supply of energy resources to the EU.

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