Ukrainian steelmakers will boost crude steel output in 2011

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Ukrainian steelmakers will increase crude steel output in 2011 as world steel demand continues to recover, according to Russian investment bank Troika Dialog.
Steel producers in Ukraine will increase crude steel output to 34.1 million tonnes in 2011, up from 32 million tonnes last year.

Capacity utilization will rise to 69%, up from 65%. However, this will still be below the 85% capacity utilization Ukrainian steelmakers reported before the economic crisis.

Companies with enhanced upstream integration will be in a better position to satisfy rising steel demand in 2011-2013, Troika Dialog said.

But higher raw materials costs will continue to limit steelmakers' profitability in 2011, the bank continued.