UKRMETALURGPROM
CHALLENGES & OPPORTUNITIES Association UKRMETALURGPROM Chronology
The amalgamation of both entities into the Association of Enterprises UKRMETALURGPROM Association UKRMETALURGPROM became an Affiliated Member of the World Steel Association 2016 The Ukrainian Association of Ferrous Metallurgy Enterprises was founded by decision of 28 National Metallurgical entities The Association of Enterprises 1998 METALURGPROM was established according to the Decree of the President of Ukraine 1995
STEELMAKING COMPANIES 15 MEMBERS OF ASSOCIATION 3 IRON ORE MINING&PROCESSING FACTORIES 8 R&D AND EDUCATIONAL INSTITUTIONS 4 COMMERCIAL COMPANIES
UKRMETALURGPROM 1 Advantages of Ukraine as of a Steelmaking Country
Advantageous Geographical Placement
Significant Raw-Materials Base
Developed Transport Infrastructure
High Concentration of Industry
World Level Quality of Products
Qualified Personnel
Significant Scientific and Educational Base
UKRMETALURGPROM 2 Location of Steel-Making Plants in Ukraine
LUHANSK Dniprovsk MP Enakievo MP KROPYVNYTSKYI DNIRPO Alchevsk MP Donetsk-steel EVRAZ DMZ Zaporizhstal DONETSK DEMP ZAPORIZHZHIA DMWP ArcelorMittal DSS Krivyi Rih MYKOLAIV Azovstal MMP Illyich
KHERSON
Plants within the controllable territory of Ukraine
Plants beyond the controllable territory of Ukraine
SIMFEROPOL
UKRMETALURGPROM 3 Share of Ferrous Metallurgy in the Ukrainian Industrial
Complex in 2016 FERROUS METALLURGY 300’000 employees 9% 18% STEEL MAKING
5% IRON ORE 75% PRODUCTION 91% other 2% Ukrainian COKE Industries PRODUCTION Other Ukrainian Industries 3’000’000 employees 25%PRODUCTION 9%MANPOWER UKRMETALURGPROM 4 Main Metallurgical Production Facilities in Ukraine (2017)
21 7 Work Timeout 15 6 12 6 7 8
8 1
Blast Furnaces Open Hearth Basic Oxygen Electric Arc Concast Machines Furnaces Furnaces Furnaces (49% of total casting)
Changes in Steel Production Facilities by Processes Crude Steel Production by Processes in 2016 for 10 years (Mio MT & %) 4% 8% Electric Arc Steel 1,45 48% 6% 69% Basic Oxygen Steel 24,2 17,91 74% 100% 48% Open Hearth 23% Steel 4,84 2007 2017 20% OHF Steel BOS EA Steel
UKRMETALURGPROM 5 Dynamics of the Crude Steel Production in Ukraine (Mio MT) The main reason of the significant reduce of the steel production in 2017 (forecast) is a military confrontation in Donbass with the loss of some steelmaking facilities and the necessity to partially diversify export markets 43 42 41 39 37 37 37 34 35 33 32 33 33 33 33 30 26 27 27 24 24 23 24
22 22 21
1995 1999 2010 1992 1993 1994 1996 1997 1998 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2011 2012 2013 2014 2015 2016 2017F
UKRMETALURGPROM 6 UKRAINIAN STEEL PRODUCTS: STEEL PRODUCTS IN UKRAINE: Production & Consuming (‘000 MT, 7 months 2017) Export & Import (‘000 MT, 7 months 2017)
EXPORT 10 618 -2 141 2 800 (-20.1%) 12 654 (26.4%) 8 477 2 091 Long Product -2 459 2 985 (24.6%) (28.1%) (-19.4%) 2 925 Flat Product 10 195 (34.6%)
4 833 (45.5%) 3 461 Semiproducts (40.8%) EXPORT
10 618 7 months 7 months (84%) 2016 2017
EXPORT IMPORT 685 584,6 8 477 267.9 (83%) 198.6 (39.1%) Long Product (34%)
Flat Product DOMESTIC DOMESTIC 376.2 410.7 MARKET MARKET (64.3%) (60%) 2 036 1 718 9.8 Semiproducts (16%) (17%) (1.7%) 7 months 7 months 6.4 7 months 7 months (0.9%) 2016 2017 2016 2017
UKRMETALURGPROM 7 Geography of the Ukrainian Steel Products Export in 2015/2016 (‘000 MT) 5 320 EU-28 6 102 2 715 Egypt 2 887 2 495 Middle East 2 529 2 501 Turkey 2 186 1 544 Russia 1 442 1 296 Africa 1 076 70 Europe 764 117 NAFTA 262 93 Latin America 195 575 CIS 123 264 India 104 2015: 17,14 Mio MT 149 Asia 2016: 17,69 Mio MT 17 UKRMETALURGPROM 8 Geography of Ferrous Metallurgy Goods Import in 2015/2016 (‘000 MT)
84 EU-28 486
340 Russia 392
19 Turkey 24
238 Egypt 20
12 India 3
116 2015: 809’800 MT China 2 2016: 927’000 MT
UKRMETALURGPROM 9 The average level of capital investments per ton of crude steel in Ukraine for last 10 years is about USD 27 per ton
Dynamics of Capital Investments into the Capital Investments per Ton of Crude Steel Ukrainian Ferrous Metallurgy in Ukraine
UAH Bio. USD Bio $/MT
12 2,5 50 10,5 10 9,7 2,0 40 8,6 8,3 8 27 1,5 30 6,4 6,3 6,2 6,4 6 5,0 4,5 1,0 20 4
0,5 10 2
0 0,0 0 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
The Adverse Investment Climate and Difficulties to Gain Foreign Investments Impede the Active Modernization of the Industry
UKRMETALURGPROM 10 Crude Steel Production Forecast in Ukraine 2017- 2026 (Mio MT) The forecast is made taking into consideration the 30 predictable activity of steelmaking facilities within the controllable territory of Ukraine 25 25,5 24 24,5 25 23 23,5 22 22,5 21 21,5 20
15
10
5
0 20172017 20182018 20192019 20202020 20212021 20222022 20232023 20242024 20252025 20262026
UKRMETALURGPROM 11 Export and Domestic Finished Steel Products Deliveries Forecast 2017-2026 (Mio MT) Export 22.7 23.2 Domestic 21.8 22.3 20.9 21.4 20 20.4 19 19.5 7 7,4 7,9 5,6 6,1 6,5 3,2 4 4,7 5,1
15,8 15,5 15,3 15,3 15,3 15,3 15,3 15,3 15,3 15,3
2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 The Ukrainian steel product export will reduce from 15.8 Mio MT to 15.3 Mio MT per year and starting since 2019 won’t be increased anymore due to stabilization of exporting markets. At the same time the significant increasing of deliveries to the domestic market with a rate of 0.4…0.5 Mio MT per year is expected.
UKRMETALURGPROM 12 GOALS & ACTIVITIES MAIN GOAL To Provide the Comfortable and Favorable Conditions for the Most Efficient Activity and the Stable Advancement of the Ukrainian Ferrous Metallurgy
The Raw Materials and Logistical Provision The Trade Policy of the Industry The Production, Technical, and the Country Technological and Energy Efficiency
The Fiscal Policy
The Strategic Development of The Technical Regulation the Industry and Metrology The Industrial and Environmental Safety
UKRMETALURGPROM 13 THANK YOU FOR YOUR ATTENTION!
www.ukrmetprom.org
UKRMETALURGPROM