Synopsis:
Despite the ongoing challenges posed by Russian attacks on Ukraine's energy infrastructure, ArcelorMittal Kryvyi Rih increased its steel production by 17% year-on-year in February 2024. The company plans to further boost capacity utilization and contribute to the Ukrainian economy during the war, maintaining its facilities for future production increases.
Article:
PJSC ArcelorMittal Kryvyi Rih, a subsidiary of the global steelmaker ArcelorMittal, has reported a 17% year-on-year increase in steel production for February 2024, reaching 77,000 metric tons. The company's press service attributed the growth to the difficult situation with energy supply in February 2023 due to the aggressor's damage to Ukraine's energy infrastructure.
In addition to the rise in steel production, ArcelorMittal Kryvyi Rih also saw significant increases in other areas of its operations. Rolled steel production grew by 16% year-on-year to 73,000 metric tons, pig iron output increased by 33% to 116,000 metric tons, iron ore concentrate production rose by 35% to 527,000 metric tons, and blast furnace coke production surged by 57% to 77,000 metric tons.
Despite the positive trends, the company's production activities in February 2024 were once again negatively impacted by Russian attacks on the energy infrastructure of the Kryvyi Rih region. As a result, steel and rolled products production saw a modest 1% month-on-month increase, while concentrate production grew by 4%. However, pig iron output fell by 22% and coke output decreased by 9% compared to the previous month.
Andriy Tarasenko, Chief Analyst at GMK Center, commented on the situation, stating, "The plant is showing positive dynamics, but the production potential of one blast furnace is almost exhausted. According to the management, the plant may launch another blast furnace in April. The products will be mostly exported. Therefore, the main factor here will be the stability of the sea corridor and the attractiveness of prices in export markets, which are currently experiencing a significant decline."
Looking ahead, ArcelorMittal plans to increase its capacity utilization from 25% to 50% in 2024. The company aims to maximize the utilization of its mining division and launch two blast furnaces in the steel division during the second quarter of the year, specifically in April.
Despite the challenges faced in 2023, ArcelorMittal Kryvyi Rih managed to produce 1 million metric tons of steel, 1.5 million metric tons of pig iron, and 0.9 million metric tons of commercial rolled products. The company's continued operation during the war has been crucial in supporting the Ukrainian economy and maintaining its production facilities for future growth when the situation improves.
ArcelorMittal Kryvyi Rih is a full-cycle steelmaking enterprise in Ukraine, with production facilities designed to produce over 6 million metric tons of steel, 5 million metric tons of rolled products, and 5.5 million metric tons of pig iron annually. The company employs more than 20,000 people and plays a significant role in the country's industrial landscape.
Conclusion:
ArcelorMittal Kryvyi Rih's ability to increase its production despite the ongoing challenges posed by Russian attacks on Ukraine's energy infrastructure is a testament to the company's resilience and commitment to supporting the Ukrainian economy. By continuing to operate and maintaining its facilities, ArcelorMittal Kryvyi Rih is positioning itself for future growth and contributing to the country's economic stability during these difficult times. As the company works towards increasing its capacity utilization in 2024, it will play an even more crucial role in Ukraine's industrial sector and the nation's overall economic recovery.
Source: STEELGURU
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