Ukrainian steelmaker Alchevsk Iron & Steel has cut its commercial slab production in favour of increasing billet output, a plant official said.

The mill, which is part of the Industrial Union of Donbass group, has reduced production of flat semi-finished product by 30% from August, the source said.

“Slab enjoyed higher demand in [Ukraine’s] spring,” he said.

Prices for the semi-finished product had already started to decline in the second quarter of the year, industry sources noted.

Slab export prices from the CIS were $610-620 per tonne fob Black Sea in the week of September 5, compared with $680-710 in late March.

Billet prices have risen over the same period, however, with deals recorded at $680-690 per tonne fob Black Sea earlier this week.

The same product was $610-620 per tonne fob Black Sea in late March.

Alchevsk can cast and roll as much as 5.6 million tpy of slab in 1,000-1,800mm widths and in 200-, 220-, 250- and 300mm thicknesses in its slabbing mill and its two-strand continuous caster.

The plant can also produce square billet in 100x100mm, 120x120mm and 125x120mm sizes, as well as round billet in 90-150mm diameters, according to company information.

However, Alchevsk is now only operating at a maximum 60% capacity, the mill official said.

In addition to semi-finished products, Alchevsk rolls heavy plate, section and merchant bar, including round bar, angles, channels and girders.