The index of business expectations of enterprises in Ukraine for the next 12 months has reached the highest level since the second quarter of 2011 – 120.6%, according to a survey of the National Bank of Ukraine (NBU) on business expectations, which was conducted in the first quarter of 2018. “The revival of business activity is expected by companies of all types of economic activity… High pace of growth of economic activity remains in place, mainly due to improved forecasts for growth in total sales of products, as well as investment costs for machinery, equipment and stock,” reads a report posted on the NBU’s website.
According to the NBU, the business increased an assessment of the financial and economic situation of its enterprises for the seventh consecutive quarter. A total of 88% of respondents assess their position as “satisfactory” or “good.” At the same time, the NBU notes that the optimism of businesses regarding their own situation supports the expectations for an increase in the volume of production as a whole in Ukraine. “This was stated by every third enterprise out of those polled. Yet every second believes that the country’s output will remain at the current level. Representatives of companies in the processing industry, trade and agriculture are the most optimistic,” the survey notes.
There has also been an increase in the number of companies that are optimistic about changing their financial situation during the coming quarters. The survey was conducted from February 5 to March 6, 2018. A total of 670 enterprises from 22 regions of the participated in the survey. They represent the economy by main types of activity, forms of ownership, and the number of employees.
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.
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.