Ukraine restores steel production in 7M13

Макроэкономика 02.08.2013 Ukraine produced 19.35 mmt of steel in 7M13, a minor decline of 0.2% yoy, the Interfax news agency reported on Aug.1. Output of finished steel products dipped 1% yoy to 17.147 mmt in 7M13. Roman Topolyuk: Steel production became almost flat in 7M13 – after a constant decline since March – due to boosted July production (3% m/m and 8% yoy). Though finished steel products output declined on a yoy basis, volume grew 4% m/m in July. Religious holidays in the Middle East – where Ukraine sells more than a third of its finished steel products – will be over on Aug. 8 and we expect further recovery in market demand and higher production volumes in the following months. That will help the country’s export revenue from steel products to restore itself from a trough of USD 1.181 bln reached in June.