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Ukrainian steel industry sees strong growth in 2023

The hardware industry in Ukraine experienced a significant sales growth of 22% during the period of January to May 2023. The demand for steel products in the construction sector also witnessed an 18% increase.

Ukrainian steel industry sees strong growth in 2023

It's noted that nearly 90% of the produced goods are exported, resulting in an overall increase in production volume.The construction industry in Ukraine is showing positive signs of recovery, with residential complexes being resumed, particularly those in the final stages of construction, especially in Western regions. Additionally, there has been an increase in consumption in private households, particularly in areas heavily affected by military operations. The market of developers in Kyiv is gradually revitalizing.

Import substitution efforts have been successful in closing the deficit positions for thick sheets, I-beams, angles, and channels, which were previously reliant on imports. The production of galvanized and polymer-coated rolled products remains import-dependent, with European, Turkish, and Chinese producers benefiting from this situation.

Ukraine is expected to become a net importer of certain steel products, particularly flat products like galvanized and painted steel. The destruction of plants in Mariupol and insufficient capacity in remaining facilities necessitate imports. However, the demand for long products is not as high since the construction sector, a significant consumer of long products, is not expected to rebound significantly until the end of the war.

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