KIEV, Aug. 7 – The steel sector, the backbone of the Ukrainian economy, reduced output 37% on the year in January through July, responding to weak demand for the commodity caused by the global financial crunch.

Ukraine, the world’s No. 8 biggest producer of steel, produced 16.3 million metric tons in January through July, down from 25.9 million tons in the same period a year ago, UkrRudProm reported.