In Ukraine there are several major steel production using the EAF method of steel production. Not counting the complexes, which consists of engineering companies, last year had two plant, LLC Interpipe steel (Dnepropetrovsk) and Elektrostal (Kurakhovo, Donetsk region).
As it became known Delo.UA Elektrostal Kurakhovo was stopped on 22 December 2015 and yet management has no intention to resume work. In December, the company produced 9.9 kt cast square billets, which is 41% less than in November and 75% less Dec 2014.
According to the Agency Metal Expert company will stand for all of February. According to the source Agency is the main consumer of semi-finished products factory in the domestic market — the Donetsk metal-rolling plant is also closed due to lack of orders on the domestic market. Moreover, it is not far from Donetsk airport in the uncontrolled Ukrainian government territory. Export also can not be considered because of the extremely low prices quoted Metall-Ekspert own source in Elektrostal.
But the Interpipe Steel in January 2016, though, and increased its steel production by 20% compared to the same period of 2015 — up to 48 thousand tons. But compared with December production decreased by 17%.
The main reason for the reduction of steel production at these enterprises — difficulties with the supply of the main raw material — ferrous scrap. According to the Metallurgprom Association of enterprises, the shortage of scrap for domestic consumption in 2015 amounted to 855 thousand tonnes, or 22% of the needs (3,92 million tons). Delivery of scrap to metallurgical enterprises of Ukraine in 2015 decreased by 25% compared to 2014 year — on-year to 3.1 million tonnes.
In January 2016, the shortage of scrap amounted to 105 thousand tons, or 40% of the estimated needs (267 tons).
The company Interpipe it is noted that the main reason for the shortage of scrap was low volume scrap: for the first month of the current year were collected 163 thousand tons of raw materials, which is the lowest figure for 10 years.
According metallurgproma, domestic consumption of scrap metal in the last month amounted to 161.5 thousand tonnes, and exports, according to GFS, it was sent only 1.5 thousand tons of raw materials.
A number of experts note that the reduction of scrap supplies to the Ukrainian steel companies is largely due to low purchasing prices and a large debt of metallurgists for the already delivered products.