Business news from Ukraine

Business news from Ukraine

ZALK AFTER LONG DOWNTIME BEGINS SMELTING ALUMINUM

PJSC Zaporizhia aluminum mill ZAlK after a long idle period has started smelting aluminum from secondary metals.
“Today, 300 kg of aluminum have been smelted from secondary raw materials – aluminum scrap,” the Interfax-Ukraine’s source said.
According to the source, this happened after a long downtime in production activities: “Before that, we had not smelted aluminum for a long time,” the source said.
According to the source, the smelting of only 300 kg does not mean the resumption of industrial production.
“So far there are no stable prospects,” the source said.
Previously, ZAlK was the only primary aluminum producer in Ukraine.
The owner of ZAlK in 2004 was the Russian group SUAL. In 2007, the plant came under the control of RusAl, created by the merger of the aluminum and alumina assets of RusAl, SUAL and the Swiss trader Glencore.
In many years of litigation, a verdict on the termination of contracts for the sale and purchase of 68.01% of ZalK’s shares and the return of this package to state ownership was issued.
According to the NDU, the State Property Fund (SPF) owns 68.0095% of the shares of PJSC ZalK, and Velbay Holding Ltd. (Cyprus, controlled by RusAl, Russia) holds 29.5363% of shares.

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KERNEL CUTS SALES OF SUNFLOWER OIL

Kernel, one of the largest Ukrainian agrarian groups, in the first quarter of 2021 fiscal year (FY), which began in July 2020, reduced sales of sunflower oil by 2% compared to the same period last FY, to 296,240 tonnes.
According to a report on the website of the Warsaw Stock Exchange on Monday, bottled sunflower oil sales in the specified period constituted 11.5% of total sales (in the same period last FY – 8.4%).
In July-September of this year, the holding’s oil extraction plants processed 662,610 tonnes of oilseeds, which is 5% more than in the first quarter of FY2020. The company said that this is – the largest ever volume in the first quarter of the financial year.
According to the report, the volume of grain exports from Ukraine in the first quarter of FY2021 increased by 31%, to 2.13 million tonnes, of which 1.9 million tonnes originated from external suppliers, and the remaining volumes being produced by company’s farming division.
Export terminals throughput volume in Ukraine increased by 56%, to 1.87 million tonnes. As explained in the company, this was driven by incremental transshipment volume on Company’s new grain export terminal in the port of Chornomorsk. The company’s silo in-take volume decreased by 36%, to 1.25 million tonnes, reflecting a crop size reduction in company’s farming business and a delayed harvesting campaign this season.
As of October 25, 2019, Kernel has threshed 43.7% corn, 98% sunflower and 100% wheat.
The agricultural holding intends to harvest corn from 254,800 hectares (10% more than a year earlier), sunflower from 148,200 hectares (9% more), wheat from 72,300 hectares (26% less), and other crops from 23,100 hectares (52% less). The company has a total of 498,400 tonnes of crop acreage, which is 3% less than in FY2020, the agricultural holding said.

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FORA EXPECTS DOUBLING OF ORDERS THROUGH DELIVERY SERVICES

The Fora supermarket chain expects that in 2021 the number of orders from the chain’s retail outlets through delivery services will double in comparison with the results of 2020.
“We believe that delivery and express delivery from retail next year will double compared to this year. According to our vision of the market, the number of purchases with small and medium check will grow especially rapidly,” Director for Digital Technologies at Fora Yevhen Trishyn said at a briefing last week.
He also said that Fora has stores in Kyiv, which provides almost full coverage.
“We have several bricks-and-mortar stores in the center of Kyiv, where the turnover through Glovo reaches 10%. This is a very good, serious indicator after six months of working through one digital service. And we expect that the number of such stores will only grow,” Trishyn said.
According to General Manager of Glovo in Ukraine Dmytro Raskovsky, the service has already outstripped other delivery services from supermarkets in terms of the number of deliveries.
“According to our estimates, if we compare the number of deliveries from supermarkets in our country and that of any other player on the market, we are now number one. Most of the large retail chains are already working with us. Of the large chains, we now only lack ATB… We have also more coverage and more partners than any other delivery service,” Raskovsky said.

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NATIONAL BANK OF UKRAINE’S OFFICIAL RATES AS OF 27/10/20

National bank of Ukraine’s official rates as of 27/10/20

Source: National Bank of Ukraine

OFFICIAL RATES OF BANKING METALS FROM NATIONAL BANK AS OF OCTOBER 27

Official rates of banking metals from national bank as of October 27

One troy ounce=31.10 grams

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UKRAINE RANKS 13TH IN WORLD STEEL RATING

Ukraine’s metallurgical enterprises in September 2020 reduced steel production by 5.4% compared to the same period in 2019, to 1.651 million tonnes, ranking 13th among 64 countries, the world’s main producers of these products compiled by the World Steel Association (Worldsteel).
In September, a drop in steel production from September 2019 was recorded in most of the top ten countries, except for India, Japan, the United States and Germany.
The top ten steel producing countries in September are as follows: China (92.555 million tonnes, an increase of 10.9%), India (8.52 million tonnes, a drop of 2.9%), Japan (6.486 million tonnes, a drop of 19.3%), Russia (5.86 million tonnes, 0.8% up), South Korea (5.831 million tonnes, 2.1% up), the United States (5.709 million tonnes, a drop of 18.5%), Turkey (3.225 million tonnes, an increase of 18%), Germany (3.018 million tonnes, 9.7% down), Brazil (2.574 million tonnes, an increase of 7.5%), and Vietnam (2.321 million tonnes, an increase of 45.3%).
They are followed by Iran (2.26 million tonnes, an increase of 2.2%), Italy (1.894 million tonnes, a drop of 18.7%), Ukraine (1.651 million tonnes, a decrease of 5.4%), Taiwan (1.605 million tonnes, a decrease of 8.1%), and Mexico (1.4 million tonnes, minus 3.9%).
In September, 64 countries produced 156.359 million tonnes of steel, which is 2.9% more than in September 2019.
In January-September 2020, 64 countries produced 1.347 billion tonnes of steel, which is 3.2% less than a year ago.

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