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Ukraine's metallurgical output sees sharp drop amid Donbas blockade

Xinhua, April 5, 2017 Adjust font size:

Ukraine's metallurgical output has suffered a sharp decline in the first quarter of 2017 due to a railway blockade in the eastern region of Donbas, local media reported Wednesday, citing data from an industry group.

In January-March 2017, Ukraine's steel output fell 7.9 percent to 5.59 million tons, the lowest level in two years, showed the data from Ukrmetallurgprom, an association of Ukrainian metallurgical companies.

Meanwhile, the production of pig iron output declined 13.6 percent to 5.05 million tons, while the output of rolled metal products was down 8.1 percent to 4.9 million tons.

Ukraine's energy-intensive metallurgical sector is highly dependent on anthracite coal, which is produced in the Donbas areas now controlled by pro-independence insurgents.

Since late January, the movement of trains transporting coal from the rebel-held area to the government-controlled territory in eastern Ukraine has been blocked.

According to Ukrmetallurgprom, the metallurgical sector would suffer losses of 3.5 billion U.S. dollars this year if the blockade continues.

Metallurgy is a key sector of the Ukrainian economy, generating more than 20 percent of Ukraine's export revenues and providing about 300,000 jobs. Endi