2022-2024 goods trade balance forecast (USD bln)
Source: Open4Business.com.ua and experts.news
Lviv-based Cardboard and Paper Company LLC, a major Ukrainian manufacturer of cardboard tubes, produced products worth UAH 506.2 million in January-May 2024, down 3.5% from the same period in 2023.
According to UkrPapir Association statistics provided to Interfax-Ukraine, the company reduced its output of cardboard products by 17.4% in physical terms to 9.4 thousand tons, while it increased its production of paper base for sanitary products by 27% to 3.6 thousand tons. The production of toilet paper in rolls decreased by 13.4% to almost 2 million units.
At the same time, in May, the company reduced its paper and cardboard production by 4.6% by May 2023, but increased it by 90% by April this year, to almost 3 thousand tons.
LLC “Cardboard and Paper Company” produces products and semi-finished products from waste cardboard (cardboard sheets, corners, sleeves), cellulose and recycled waste paper (toilet paper, towels, napkins TM Papero). The company supplies its products, in particular, to the EU countries.
Among its customers are Biosphere, Arterium, Nestle, Khlibprom, Yarych, and Galych dairy companies.
As reported, in 2023, the company increased its production by 7% compared to 2022, to UAH 1.27 billion.
The State Property Fund of Ukraine (SPFU) has put up for sale the unified property complex of the state-owned enterprise Nepolokovets Bakery (Chernivtsi region) with a starting price of UAH 217.4 million, said Vitaliy Koval, the Fund’s chairman.
“This is an operating enterprise for the production of flour and cereal products with a strong production base and significant development potential,” he wrote on Telegram.
The complex is located in the village of Nepolokivtsi, 27 km from Chernivtsi. It consists of production, warehouse, administrative and auxiliary buildings with an area of about 42 thousand square meters, as well as 24 vehicles and special equipment, more than 1200 pieces of equipment and other assets.
Among the advantages of the facility, the SPF chairman named the ready-made infrastructure, which allows to immediately start operations and increase volumes, a favorable location near the EU border and guaranteed demand for products.
The auction will take place on June 24 in the electronic trading system Prozorro.Sale.
Geographical structure of Ukraine’s foreign trade (surplus) in Jan-Feb 2024, ths. USD
Source: Open4Business.com.ua and experts.news
Poltava Mining and Processing Plant (PGOK, Ferrexpo Poltava Mining, Horishni Plavni, Poltava region), the main asset of Ferrexpo Group, majority owned by businessman Konstantin Zhevago, ended 2023 with a net loss of UAH 5 billion 444.659 million, compared to UAH 9 billion 134.166 million in the previous year.
According to the company’s annual report, which is available to Interfax-Ukraine, the pre-tax loss in 2023 amounted to UAH 5 billion 254.935 million (UAH 7 billion 825.999 million).
During this period, the company reduced its net income by 33.1% to UAH 15 billion 65.640 million.
Retained earnings by the end of 2023 amounted to UAH 20 billion 717.117 million.
Ferrexpo is an iron ore company with assets in Ukraine.
According to the first quarter of 2024, Ferrexpo AG (Switzerland) owns 100% of Poltava Mining.
The authorized capital of Poltava Mining is UAH 1 billion 902.36 million.
Ferrexpo owns a 100% stake in Yeristovo Mining, 99.9% in Bilanivsky Mining and 100% in Poltava Mining.
Ukraine’s gross domestic product (GDP) growth rate slowed to 3.5% in May from 4.2% in April and 4.8% in March as a result of significant damage to electricity generation by Russian attacks, the Institute for Economic Research and Policy Consulting (IEPC) said in its Monthly Economic Monitor.
“Due to the damage to electricity generation, restrictions on business electricity supply have been applied. The IED estimates that the growth rate in the processing industry has slowed to 5% from 11%. At the same time, easier logistics supported the sector’s growth. We are talking, in particular, about machine building and metallurgy,” the IED noted.
According to the institute’s estimates, real gross value added (GVA) growth in the extractive industry increased by 2% due to fairly stable production of gas, iron ore, as well as construction materials.
Real GVA in transportation rose by almost 15%, up from 11% in April, in part due to the unblocking of western borders as well as the statistical base effect.
“In contrast to the weak performance of the “grain corridor” in 2023, the Ukrainian Maritime Corridor allows us to maintain high exports through seaports. At the same time, not only grain, but also iron ore and metallurgy products are brought in,” the IEI stated.
In May, as in the previous three months, consumer inflation was slightly above 3% (3.3%). The IEI believes that this reflected a good harvest last year (and for some products this year) and low export prices for Ukrainian agricultural products compared to last year, lower logistics costs for imports and significant competition for consumer demand.
According to the IEI, this has so far compensated for the increase in a number of business expenses due to rising wages, rising fuel and electricity costs, and the weakening of the hryvnia against the dollar.
It is expected that the balance between the factors restraining price growth and growth of suppliers’ and retailers’ expenses may change in the next months and lead to acceleration of inflation.
At the same time, moderate inflation expectations and relatively limited demand will further restrain price growth, so sharp price increases for most goods are not expected. The exception was the government’s increase in electricity tariff, which led to an increase in the consumer price index by more than 1%.
Monthly inflation accelerated to 0.6% in May due to a 10% rise in fruit prices. At the same time, egg prices continued to fall: they fell in price by 14% and almost halved compared to December last year. Prices for other goods rose by an average of 0.3%.
As reported, after Ukraine’s GDP growth of 5.3% in 2023, the National Bank expects it to slow down to 3% in 2024, while the government expects it to slow down to 4.6%. According to the Ministry of Economy, GDP growth for January-April this year amounted to 4.4%, while the NBU estimated it at 3.7%.
Earlier, the analytical center Experts Club and Maxim Urakin released a video analysis of how the GDP of the world’s countries has changed in recent years, more detailed video analysis is available here – https://youtu.be/w5fF_GYyrIc?si=BsZmIUERHSBJrO_3.
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