In August this year, following the three months in a row of decrease, Ukrainian crude steel output showed an improvement, with domestic steelmakers producing 2.6 million mt, up from 2.42 million mt in July, and with daily average output increasing seven percent month on month to 83,870 mt.

Accordingly, August''s improvement was mainly driven by the restoration of production at ISD''s subsidiaries Alchevsk Iron and Steel Works (Alchevsk) and Dneprovsky Iron and Steel Works named after F. Dzerzhinsky (DMKD), which saw 63 percent and 39 percent month-on-month increases respectively in their crude steel outputs, following Metinvest''s partial resumption of iron ore supplies in mid-August.

Also a significant increase in crude steel production of 15.7 percent month on month was registered by Ilyich Iron and Steel Works of Mariupol (Ilyich) due to the favorable conjuncture in the world flat steel markets caused by restrictions on exports of Chinese products. In addition, an important factor was the supply of raw

In September 2010, experts expect a further growth of steel production in Ukraine by another 4-5 percent, following the resumption of business activity in the Middle East with the end of Ramadan.

"On the whole, however, Ukraine''s January-August operational results were quite weak, especially when compared with its main competitors, Russia and Turkey, which are poised to report 20-25 percent year-on-year growth in the first eight months'' output," Eugen Dubogryz, analyst from BG Capital, said.