Business news from Ukraine

Business news from Ukraine

MAJOR PIPE ENTERPRISES OF UKRAINE INCREASE OUTPUT IN JAN-MARCH

The major pipe enterprises of Ukraine in January-March 2018 increased production of pipes by 10.7% compared to the same period last year, to 268,800 tonnes, including in March they manufactured 99,000 tonnes. The Economic Development and Trade Ministry of Ukraine told Interfax-Ukraine that enterprises, which are not members of the Ukrtruboprom association, cut production by 9.4% year-over-year, to 72,600 tonnes, including 28,100 tonnes made in March.
Mariupol Illich Steel Works, which is not a member of the association, increased pipe production by 8%, to 35,100 tonnes (15,100 tonnes in March), while Kominmet decreased it by 21%, to 37,600 tonnes (13,000 tonnes).
The Ukrtruboprom association told Interfax-Ukraine its enterprises in January-March 2018 increased pipe production by 21%, to 196,200 tonnes, in March making 70,900 tonnes.
Pipe production at Interpipe Nyzhniodniprovsky Pipe Rolling Plant in the period rose by 28.6% compared to January-March 2017, to 72,400 tonnes (25,900 tonnes in March), Interpipe Novomoskovsk Pipe Plant increased output by 33.9%, to 24,500 tonnes (9,000 tonnes in March), while Interpipe Niko Tube raised production by 22.9%, to 88,600 tonnes (32,600 tonnes in March).
Dnipropetrovsk Pipe decreased pipe production by 21.2%, to 5,200 tonnes, making 1,500 tonnes in March. Production at Centravis grew by 9.1%, being 4,800 tonnes of stainless pipes (1,700 tonnes in March).
Pipe production at Trubostal remained unchanged, being 700 tonnes (200 tonnes in March).
Luhansk Pipe Rolling Plant, created on the basis of Luhansk Pipe Plant, and Khartsyzsk Pipe Plant (Donetsk region), located in the government uncontrolled zone, remained idle in January-March 2018.

UKRAINIAN METAL PLANTS PLAN TO BOOST STEEL SMELTING

Ukrainian metal enterprises intend to increase steel smelting by 5.9% in May 2018 in comparison with the planned indicators of April, to 1.8 million tonnes from 1.7 million tonnes. According to the information of the Ukrmetallurgprom association following the results of the balance meeting, the plan for May also provides for the preservation of the total rolled steel production at the level of 1.6 million tonnes and the preservation of pig iron smelting at the level of 1.8 million tonnes.
According to Ukrmetallurgprom, in March, the metal companies produced 1.68 million tonnes of pig iron (103% on February), 1.71 million tonnes of steel (106%) and 1.51 million tonnes of rolled steel (107%).
In January-March 2018, 15.2 million tonnes of iron ore concentrate (100% compared to the same period in 2017), 7.96 million tonnes of agglomerate (108%), 5.3 million tonnes of pellets (107%), 2.71 million tonnes coke (105%), 5.25 million tonnes of pig iron (108%, taking into account work of the enterprises located in the government uncontrolled areas in January-February 2017, or 120% without them), 5.23 million tonnes of steel (97% and 105% respectively); 4.59 million tonnes of rolled metal (98% and 108%), 269,000 tonnes of pipe products (111%).
As of April 10, 19 out of 21 blast furnaces, 7 out of 9 open-hearth furnaces, 12 out of 16 converters, 7 out of 15 electric furnaces and 14 of 14 continuous casting machines were in operation.
In March 2018, 2.75 million tonnes of iron ore were supplied to the metal companies (110% on February 2018), in the first three months – 8.025 million tonnes (123% against the same period in 2017, taking into account activity of enterprises in the government uncontrolled areas in January-February-2017, or 137% without them), of which 8 million tonnes are of Ukrainian origin (124% compared to the same period in 2017), and 25,000 tonnes of imported iron ore (37%).
Exports of iron ore in March amounted to 2.8 million tonnes (104% compared to February 2018), in the first quarter – 8.6 million tonnes (87% compared to the same period in 2017).
In March 2018, scrap collecting companies procured 284,000 tonnes of scrap (102% on February 2018).
The demand of the metal complex’s demand for imported scrap metal in the first quarter was covered by 92%.

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KYIVSKY CARDBOARD MILL SEES 30% RISE IN PRODUCTION

Kyivsky cardboard paper mill (Obukhiv, Kyiv region), a leader in Ukraine’s pulp and paper industry in terms of production and sales, produced goods worth UAH 1.323 billion in the first quarter of 2018, which was 30.2% up year-over-year (y-o-y).
Thus, production in the first three months of 2018 somewhat slowed compared to the same period last year (production growth in January was 36% and that in January-February was 34.3%), the UkrPapir association said.
Corrugated packaging output grew by 18%, to 55.8 million square meters, which was the second highest result among producers of corrugated packaging in Ukraine after Rubizhne cardboard packaging mill in Luhansk region (with Trypilsky packaging plant).
Production of cardboard increased by 35%, to 55,800 tonnes. Production of package cardboard alone grew by 45.7%, to 35,840 tonnes, while box cardboard output rose by 18.7%, to almost 19,000 tonnes.
However, production of base paper (for sanitary products) stood at 18,380 tonnes, which was 1.7% down y-o-y. Toilet paper output grew by 8%, to 103.9 million rolls.
Corrugated packaging output in total in Ukraine (including other producers) grew by 12% January through March 2018, to 246.56 million square meters, that of paper and cardboard increased by 16.4%, to 234,230 tonnes.
Kyivsky cardboard paper mill is one of the largest cardboard and paper producers in Europe. It employs almost 2,200 people. It sells produce to almost 700 companies in Ukraine, some CIS member states and the rest of the world.
In 2017, the mill saw a 14.8% rise in production from 2016, to UAH 4.850 billion.

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MARIUPOL SEAPORT INCREASES CARGO HANDLING BY 10%

Mariupol seaport (Donetsk region) in January-March 2018 increased cargo handling by 10.5%, year-over-year, to 1.333 million tonnes.
In the first three months of 2018, the port increased transshipment of exported cargo by 5.8%, to 1.26 million tonnes, imported freight by 4.3 times, to 56,000 tonnes, cabotage cargo by 6.5 times, to 16,300 tonnes, the Ukrainian Sea Ports Authority said.
Yet, the port did not handle transit goods.
According to the types of cargo, the port did not handle liquid cargo, while dry bulk handling rose by 1.2%, to 239,000 tonnes, that of non-bulk goods increased by 17.8%, to 1.094 million tonnes.
Mariupol seaport is one of the largest ports of Ukraine. Its capacity allows handling more than 17 million tonnes of cargo per year. The port is open all year round for ships with a length of up to 240 meters and a draft of up to 8 meters. Its territory is 73.2 hectares, the length of the berthing line is 4.2 km.

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