KIEV, May 25 – Ukrainian mining and steel companies in 2011 will increase rolled steel output by 12% compared to 2010, to 31.4 million tons, steel output by 9%, to 35.5 million tons, the government forecast.

The steel sector is the backbone of Ukraine’s economy and its growth is a major indicators for the country’s economic performance and budget revenue.

The latest forecast, which appears to be more optimistic that had earlier been expected was based on production indicators of January-April 2011, an official at of the Industrial Policy Ministry said.