KIEV, Oct. 6 - Ukrainian steel companies will reduce production of key steel products by at least 1% in 2008 due to the market downturn, an official at the Industrial Policy Ministry told Interfax.

He said a substantial decline in output began in August, and the situation deteriorated in September.

Average daily production in the country last year amounted to 117,300 tons of crude steel, 97,700 tons of pig iron and 98,700 tons of finished roll. These figures slipped to respectively 115,400 tons, 96,600 tons and 97,100 tons in the first nine months of 2008, tumbling to 82,700 tons, 71,800 tons and 71,000 tons in September, he said.