KIEV, July 12 – Fitch Ratings says rising raw material prices and VAT tax refund-related liquidity concerns are exposing longstanding structural weaknesses in the Ukrainian steel industry, and this could ultimately lead to a consolidation of producers.

"Given the challenges facing the Ukrainian industry at present, M&A transactions could represent an attractive way-out for smaller/weaker producers facing either substantial debts, the need to modernize their plant and/or those lacking in raw material self-sufficiency," said Peter Archbold, Senior Director in Fitch's Industrials team.