Zaporizhstal, one of Ukraine's key steel producers, has released its production data for November and the first 11 months of 2024. Located in the southeastern part of Ukraine and operated by Metinvest, the steel mill is an important player in both the national and international steel markets. While November's performance showed some year-on-year declines, the overall trend for the year has been positive, with the mill reporting significant increases in production across its major product categories.
In November 2024, Zaporizhstal produced a total of 259,600 metric tons (mt) of pig iron, 227,300 mt of crude steel, and 191,400 mt of finished steel. These figures represented declines of 1.2%, 5.6%, and 2.1% compared to November 2023. The decreases in output for each of the product categories can be attributed to various factors, including market conditions, internal operational adjustments, and the ongoing challenges faced by Ukraine's industrial sector due to the geopolitical situation. Despite the declines in November, these levels of production remain significant, reflecting the mill’s continued operational capacity.
However, when looking at the January-November 2024 period, the results are much more favorable for Zaporizhstal. The mill produced 2.82 million metric tons of pig iron during the first 11 months of the year, which marks a 15% increase compared to the same period in 2023. This growth in pig iron production is especially noteworthy, as pig iron is a key raw material for steelmaking, and a rise in its output often signals strong demand for crude and finished steel down the line. This improvement reflects the mill's ability to overcome operational challenges and meet the growing demand for its products.
Similarly, the production of crude steel in the first 11 months of 2024 reached 2.65 million metric tons, an 18.2% increase compared to the previous year. This strong performance in crude steel production is significant for Zaporizhstal, as crude steel is one of the mill's most essential products, used across industries including construction, automotive, and machinery manufacturing. The rise in crude steel production indicates that the mill has successfully ramped up its output, likely driven by strong domestic and export demand despite challenging circumstances.
In parallel, Zaporizhstal’s production of finished steel, which reached 2.19 million metric tons in the first 11 months, increased by 18.7% year-on-year. Finished steel is typically used in more refined manufacturing processes and is critical for industries such as construction, infrastructure, and automotive manufacturing. This rise in finished steel production is a positive indicator for the mill’s ability to supply high-quality products to key industries, demonstrating that Zaporizhstal has managed to meet market demands and expand its production despite ongoing difficulties.
The contrasting performance of November 2024 and the January-November 2024 period highlights the resilience of Zaporizhstal amid the challenges faced by the Ukrainian economy and the global steel industry. The year-to-date figures demonstrate that, despite temporary setbacks, the mill has managed to achieve substantial growth in its overall production. This is a testament to the company's ability to adapt to market fluctuations and external pressures, as well as its capacity to leverage its operational strengths.
Zaporizhstal’s production performance is particularly significant given the difficult conditions in Ukraine, which has been affected by the ongoing conflict in the region. Despite the challenges posed by the geopolitical situation, the mill has shown impressive production capacity, underscoring the strength and adaptability of the country’s industrial sector. With rising crude steel and finished steel production, Zaporizhstal is poised to continue playing a crucial role in Ukraine’s steel industry, contributing to both national economic stability and international trade.
Overall, while November’s results showed slight year-on-year declines, the overall performance for the year has been strong, with the mill recording notable increases in pig iron, crude steel, and finished steel production. These results reflect Zaporizhstal’s ongoing recovery and growth in a challenging environment, positioning it as a key player in Ukraine’s industrial landscape for the rest of 2024 and beyond.
