This increase shows that the growth momentum in the country's steel sector continues. However, compared to July 2024, production decreased by 3.6%.
Flat steel production in August experienced a notable decrease. At 190.77 thousand tons, production was a decrease of 23.4% compared to the previous month and 13.7% compared to 2023. This is reportedly a reflection of the fluctuations in global markets and the impact of supply-demand balances in the domestic market on production.
In January-August 2024, Kazakhstan increased its steel production by 9.4% compared to the same period of the previous year to 2.78 million tons. Flat products also increased by 24% to 2.03 million tons in the same period. These data show the growth trend in Kazakhstan's steel sector and the expansion of production capacity.
Last year, in 2023, Kazakhstan increased its steel production by 16.4% to 3.92 million tons. However, in the same period, flat product production decreased by 3.6% to 2.45 million tons. This points to differences in production diversification and strategies.
For 2024, a key expectation is that Kazakhstan's leading steel producer Qarmet will further increase its production volumes. The company is expected to increase its steel production to 3.5 million tons and iron ore concentrate production by 10% to 10 million tons. On the other hand, coal production is expected to decrease by 2%, demonstrating Kazakhstan's strategic planning for its energy resources.
Another important development in Kazakhstan's steel sector was the transfer of ArcelorMittal's assets in Kazakhstan to Qazaqstan Investment Corporation. With this sale, shares in ArcelorMittal Temirtau and Tubular Products Aktau were transferred to the new investor Qazaqstan Steel Group and its founder Andrey Lavrentiev. Subsequently, ArcelorMittal Temirtau was renamed Qarmet.
The new investors not only took over the assets, but also committed to investing heavily in the modernization of production and environmental protection. The USD 1.3 billion investment planned for 2024 is likely to make a strong contribution to Kazakhstan's goals of increasing its steel production capacity.
Against this backdrop, Kazakhstan's steel sector is poised to play a bigger role in both domestic and international markets. In particular, Qarmet's modernization and production expansion plans could further boost the country's competitiveness in this sector.
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