War Halts Steel Production in Ukraine
Strategic Research Institute
Published on :
25 Feb, 2022, 5:35 am
Several Ukrainian steel mills & miners announce production suspensions or slowdown after Russian attack. Steel shipments from Ukraine have also been halted following disruptions to logistics routes required for steel and iron ore transport.
ArcelorMittal Kryvyi Rih has announced that it has taken the decision to work on slowing down operations in Ukraine to a technical minimum and to halt production at its underground mines. ArcelorMittal Kryvyi Rih said "ArcelorMittal is deeply concerned about the developments in Ukraine and potential impact this will have on our colleagues in the country. Our priority is our people and we had developed plans to help them stay safe should the situation escalate in this way.”
Metinvest Group has put some equipment of Ilyich Iron and Steel Works and Azovstal in a suspension mode to ensure the safety of its employees and preserve the equipment. Metinvest said “The plants will use up hot metal and steel available on 24 February, following which the operations will be put on hold. Azovstal will suspend its operations in coke shop, recovery and desulphurization shop, blast furnace shop, BOF shop, plate mill, rail and structural mill, lime shop, and slag processing shop. MMKI will suspend operations at the sinter plant, blast furnace and BOF shops, 1700 HSM and 3000 plate mill, and the cold rolling mill. The production suspension will continue for seven days. The decision on further operation of the enterprises will be made based on how the situation develops.
Interpipe announced that it has decided to temporarily suspend its operations. The company has stopped production at its assets in the Dnipro region.
World's 3rd largest exporter of high grade iron ore pellets Ferrexpo plc said that it is closely monitoring developments & will prioritise the safety of its workforce. It said “At the present time, the Group’s mining and processing facilities are operating, which are located adjacent to the city of Horishni Plavni, in central Ukraine, where the situation remains stable. However, the government of Ukraine has now suspended rail transportation.”
Ukraine is the world's 13th largest producer of steel and fifth largest exporter of iron ore by volume. It produced 21.4 million tonne of crude steel in 2021 & exported about 80% of its steel output. The country exported 44.4 million tonnes of iron ore products in 2021.