Ukrainian steelmakers summarize the work in the past year, avoiding to make predictions for 2012.
“The results of the eleven months I can say that we have reached the figures provided. The level of production — is higher than last year, however, all the production was provided and raw materials, and energy resources”, — said General Director of Association “Metallurgprom” Basil Kharakhulakh during the balance sheet meeting of representatives of mining companies in Dnipropetrovsk on 14 December.
The Association noted the stable operation of almost all enterprises for the current year. The negative impact of falling prices for steel that began in September after a small price increase in the summer months, was not significant.
Pig iron production in November amounted to 2,421 million tons (average daily production of 80.7 million tons), steel — 2,876 million tons (with 95.9 thousand tonnes) rolled products — 2,631 million tons (of 87.7 thousand tons). The daily average production of pig iron in the first seven days of December was 77.1 thousand tons, steel — 91 thousand tons, rolled products — 80,8 thousand tons. Iron production in January-November increased compared to the same period in 2010 by 6% to 26,504 million tons, steel — by 7% to 31,928 million tons.
Adjusted balance timetable, to ensure that enterprises of iron-ore raw materials (IORM) in November made on the pellets by 102%, agglomerate — by 94%, sinter ore — by 87%, concentrate — 100%. In January-November, providing steelmakers with pellets amounted to 101%, agglomerate — 92%, the sinter ore 92%, concentrate — 97%.
Imports of iron ore in November was 151,5 thousand tons, including sinter ore of 88.5 thousand tons of a concentrate — 25 thousand tons of pellets — 38 thousand tons. The iron ore import in January-November fell compared with the same period last year to 40.1% to 1,271 million tons, including imports of concentrate fell by 79.5% to 229,6 thousand tons, the import of sintering ore decreased by 8.2% to 828,1 thousand tons, import of pellets increased by 2.1 times — up to 213,6 thousand tons, the import of agglomerate was carried out.
Exports of iron ore in November was $ 3,070 million tonnes, including concentrate — 1,266 million tons, sintering ore — 0,579 million tons, pellets — 1,226 million tons. Iron ore export in January-November increased compared with the same period last year by 2.6% to 30,968 million tonnes, including the export of concentrate grew by 0.4 percent, to 13,692 million tons, sinter ore export grew by 10.6% to 6.07 million tons, the export of pellets increased by 8% to 11,108 million tons, export of sinter fell by 87.3% to 98 thousand tons.
The coke in November put the metallurgists 1.2 million tons of coke. In January-November, delivered 13.6 million tonnes of coke, accounting for 94% of the estimated balance the needs of metpredpriyatiy and 3% higher than the level of supply over the same period in 2010. Coke imports in November amounted to 32 thousand tons. Import of coke in January-November amounted to 137 thousand tons (in January-may 2010 — 232 thousand tonnes).
Supplies of coking coal of Ukrainian production to the coke in November amounted to 1,255 million tons. The receipt of domestic coal to the coke in January-November amounted to about 16 million tons, accounting for 98% of shipments in January-November 2010. Imports of crude coking coal and coal concentrate for coking in November amounted to 870 thousand tons. The import of this raw material in January-November increased compared with the same period last year by 9% to 9.3 million tons. Remnants of coal in the warehouses of coke at 1 December 2011 was approximately 550 thousand tons.
As of December 1, the company operated 27 out of 36 blast furnaces (75%), 18 of the 21 converters (86%), 14 open-hearth furnaces of the 21 (67%) and seven of the 15 furnaces (47%).
In accordance with the balance apportioned in January 2012 the production of pig iron will be reduced in comparison with the planned production volumes for December by 6.3% to 2,370 million tons (average daily production — 76,5 thousand tons), steel — by 6.6%, to 2,820 million tonnes (91 thousand tons), rolled products — by 6.7%, to 2,510 million tons (81 tonnes).
According to Harahulaha, steelmakers are now not confident that they can maintain a stable capacity utilization. “We wanted to see the level of production next year, but, unfortunately, businesses have given only approximate figures, — said the head of “metallurgproma”. — So far, none of the companies has not received the approved business programs at their corporations. So we agreed with companies that the first quarter of next year will be to plan and forecast on a monthly basis. So will the entire first quarter, until it finally becomes clear in which direction will change the world market of metal products”.
For the umpteenth time this year Kharakhulakh mentioned one of the key problems of the industry — the weakness of the domestic steel market. And cited the example of Russia, where the authorities are trying to stimulate the domestic market through the implementation of government programs. “Last year the Russian Federation for the domestic market sold 69% of its steel, and for export — 31%. And today, making its work programme for next year, steelmakers are already considering the question of reducing foreign market because they do not cover the domestic volumes,” said Kharakhulakh. The head of “metallurgproma” noted the effective implementation of the approved by the Ministry of economic development and trade of Russia of programs of development of mechanical engineering, power engineering, railway transport, thanks to which metallurgists can predict and modernization of production and the product range.
The domestic market of Ukraine, in addition to a smaller scale, devoid of systemic and effective state incentives. This, in turn, prevents the orderly and sustainable development of the industry. For this reason, our Steelworkers cede the domestic market to competitors from abroad, often they do not even get orders in the framework of projects financed from the state budget.
Another problem facing mining companies from January 1, 2012 — a significant shortage of freight cars. “All the rolling stock of “Ukrzaliznytsya” reports to private companies, which are organized in machine-building and car-repair factories. () Thus, the whole car Park will be private. So we don't know where to turn for wagons to provide all the transportation of raw materials, resources, finished products. Until it's all coming back to normal, the mess will be incredible,” says Kharakhulakh.
The Department of industrial policy at the Ministry of Finance has enlisted the support of all mining companies and suggested that “Ukrzaliznytsya” to introduce a transition period so that the state rail operator to retain control over the fleet until the completion of its transfer under the control of private enterprises.
Julia Ruda,
www.ukrrudprom.ua