Benchmark oil prices are rising on Monday morning on the news of the deaths of US military personnel in Jordan as a result of drone attacks.
The price of March futures for Brent on the London ICE Futures exchange at 7:07 a.m. is $83.97 per barrel, which is $0.42 (0.5%) higher than at the close of the previous session. Last Friday, these contracts rose in price by $1.12 (1.4%) to $83.55 per barrel.
Quotations for March futures for WTI in electronic trading on the New York Mercantile Exchange (NYMEX) by this time increased by $0.36 (0.46%) to $78.37 per barrel. At the end of the previous session, they rose by $0.65 (0.8%) to $78.01 per barrel.
Last week, the price of Brent rose by 6.4%, a record pace since mid-October, and WTI by 6.5%, the highest since early September.
Oil prices were supported last week by data showing a drop in US oil reserves and production last week, said Colin Czeszynski, an analyst at SIA Wealth Management. An additional positive factor was the expectation of new incentives in China.
Meanwhile, the US military reported a drone attack on an American base in northeastern Jordan near the border with Syria. Three soldiers were killed and 34 others were injured. US President Joe Biden said on Sunday that Iranian-backed militias were responsible for the attack.
Much will now depend on the US response and the actions of Iran, which could close the Strait of Hormuz, Tariq Zaheer of Tyche Capital Advisors told MarketWatch. “We are on the verge of escalation, which could seriously affect oil flows,” he added.
Data from the oilfield services company Baker Hughes showed that over the past week, the number of operating oil rigs in the United States increased by two to 499 units. Meanwhile, the number of gas rigs decreased by one to 119.
In December 2023, Ukrainian steelmakers increased steel production by 4.9 times compared to the same period in 2022 – up to 520 thousand tons from 106 thousand tons, but decreased by 4.8% compared to the previous month, when 546 thousand tons were smelted.
At the same time, Ukraine retained its 21st place in the ranking of 71 countries that are global producers of these products compiled by the World Steel Association (Worldsteel).
According to Worldsteel, in December 2023, steel production increased compared to December 2022 in most of the top ten countries, except for China and Germany.
The top ten steel producing countries in December are as follows: China (67.440 million tons, down 14.9% by December 2022), India (12.141 million tons, + 9.5%), Japan (6.980 million tons, + 1.1%), the United States (6.813 million tons, + 7.6%), the Russian Federation (6 million tons, + 4.3%), South Korea (5.375 million tons, +2.7%), Turkey (3.224 million tons, +21.2%), Iran (2.872 million tons, +12.1%), Germany (2.631 million tons, -2.3%) and Brazil (2.523 million tons, +0.9%).
Overall, in December 2023, steel production decreased by 5.3% compared to the same period in 2022 to 135.666 million tons.
In 2023, the top ten steel-producing countries are as follows: China (1 billion 19.080 million tons at the level of the previous year), India (140.171 million tons, +11.8%), Japan (86.996 million tons, -2.5%), the United States (80.664 million tons, +0.2%), the Russian Federation (75.8 million tons, +5, 6%), South Korea (66.676 million tons, +1.3%), Germany (35.438 million tons, -3.9%), Turkey (33.714 million tons, -4%), Brazil (31.869 million tons, -6.5%) and Iran (31.139 million tons, +1.8%).
In total, 71 countries produced 1 billion 849.734 million tons of steel in 2023, which is 0.1% less than in 2022.
At the same time, Ukraine produced 6.228 million tons of steel in 2023, which is 0.6% lower than in 2022. The country was ranked 22nd in 2023.
As reported, in 2022, the top ten steel-producing countries were as follows: China (1.013 billion tons, -2.1%), India (124.720 million tons, +5.5%), Japan (89.235 million tons, -7.4%), the United States (80.715 million tons, -5.9%), the Russian Federation (71.5 million tons, -7.2%), South Korea (65, 865 million tons, -6.5%), Germany (36.849 million tons, -8.4%), Turkey (35.134 million tons, -12.9%), Brazil (33.972 million tons, -5.8%) and Iran (30.593 million tons, +8%).
Ukraine ranked 23rd in 2022 with 6.263 million tons of steel produced (-70.7%).
In total, 64 countries produced 1 billion 831.467 million tons of steel in 2022, which is 4.3% less than in 2021.
Quotes of interbank currency market of Ukraine (UAH for $1, in 01.10.2023-31.10.2023)
Source: Open4Business.com.ua and experts.news
The housing price index in Ukraine in July-September 2023 amounted to 116.2%, while in the same period of 2022 the figure was 114.2%, the State Statistics Service (Ukrstat) reported.
According to it, in the primary market, housing prices in the third quarter of 2023 accelerated growth to 14.6% compared to 11.9% in the third quarter of the previous year. Three-bedroom apartments rose in price the most – by 16%. The price increase for one-bedroom apartments was 15.6%, and for two-bedroom apartments – 12.8%.
In the secondary market, prices accelerated growth to 17.1% in the third quarter of 2023, up from 15.6% in the same period of 2022. Thus, the growth in prices for three-room apartments amounted to 18.5%, two-room apartments – 17.9%, one-room apartments – 14.1%.
Overall, in the first nine months of 2023, housing prices increased by 13.9% compared to the same period in 2022. In the primary market, the growth was 12.2%, in the secondary market – 15.1%.
According to the statistics agency, compared to the previous quarter, housing prices in July-September 2023 increased by 6%, with a 4.5% increase in the primary market and a 6.9% increase in the secondary market.
According to the State Statistics Service, in the third quarter, prices for primary housing increased by 3.6% for one-bedroom apartments compared to the second quarter, by 4.9% for two-bedroom apartments, and by 6% for three-bedroom apartments. On the secondary market, prices rose by 5.1%, 7.5% and 7.6%, respectively.
The State Statistics Service noted that the figures exclude the temporarily occupied territories and part of the territories where military operations are ongoing (or have been ongoing).
During the military years of 2022-2023, more than 660 MW of new renewable energy capacities were commissioned in Ukraine, Energy Minister Herman Halushchenko said.
According to him, in 2022, about 312 MW of new renewable energy capacities were built, and in 2023, almost 350 MW were commissioned. These are solar, wind, biogas and small hydroelectric power plants.
“For Ukraine, the development of clean energy is one of the key factors in ensuring energy independence and energy security, especially in the context of Russian military aggression,” Galushchenko said in a release from the Ministry on the occasion of the International Clean Energy Day, which is celebrated in accordance with a UN General Assembly resolution on January 26.
He also noted that despite the loss of 80% of wind farms and 20% of solar power plants as a result of the Russian invasion, their share in Ukraine’s energy mix remains significant – in 2023, approximately 10% of electricity was generated by wind and solar power plants. Taking into account large hydroelectric power plants, the share of clean energy produced reached 20.3% (more than in the pre-war period).
“The Energy Strategy of Ukraine adopted last year stipulates that we will continue to pursue the course of clean energy production. As early as 2030, the share of renewables should be at least 25% in the energy balance, and by 2050, Ukraine should achieve climate neutrality,” Galushchenko said.
He also added that today the Ukrainian nuclear industry produces more than 55% of electricity. In 2023, nuclear power plants generated 10% more electricity than the forecast balance of the IPS. As part of the Energy Strategy of Ukraine, it is planned to build nine new nuclear units, the construction of four of which may begin as early as 2024.
In January 2024, the State Enterprise “Forests of Ukraine” liquidated wood processing plants throughout Ukraine, said the company’s CEO Yuriy Bolokhovets.
“Elimination of processing is a painful topic. It is much more pleasant to create than to close. But sometimes you have to make unpopular decisions,” he wrote on Facebook.
The company’s CEO said that forestry enterprises had started processing earlier because the sale of round wood did not cover costs. However, after the development of private wood processing, competition in the market increased. State-owned production facilities are formally profitable, but in fact they are subsidized.
As an example, Bolokhovets cited the work of a workshop of one of the branches of the Forest of Ukraine, which specializes in harvesting oak and produces oak parquet lamellae. Its profit for 10 months of 2023 amounted to UAH 8.3 million. However, the shop receives oak at cost, which is much less than the market price.
“If the same round wood were sold through open bidding, the branch could have earned UAH 24.1 million. Formally, the shop’s profitability is 58%, but in reality, the company lost UAH 16 million,” explained the company’s CEO and added that the situation is similar in almost all processing shops, of which there are more than a hundred at Forests of Ukraine.
According to Bolokhovets, in 2023, the workshops of the State Enterprise “Forests of Ukraine” processed 0.9 million cubic meters of wood, the market value of which is UAH 2.15 billion. The company sold 0.4 million cubic meters of lumber worth UAH 2.3 billion. The difference amounted to UAH 150 million, which is several times less than the cost of production (salaries, electricity, etc.), the head of the state-owned enterprise stated.
“In addition to the burden of subsidies to the workshops, we will also get rid of a significant share of corruption, which will also certainly contribute to an increase in the SOE’s revenues,” Bolokhovets stated and expressed confidence that the first positive results of this structural change will be visible in the first half of 2024.
As reported, Ukraine launched a forestry reform in 2016. As part of it, the sale of unprocessed timber at electronic auctions has already been introduced. Since 2021, an interactive map of wood processing facilities has been operating in a test mode in a number of regions.
The industry has implemented the Forest in a Smartphone project, which contains a list of logging tickets for timber harvesting and allows you to check the legality of logging on the agency’s online map.
On June 1, 2023, Ukraine launched a pilot for the electronic issuance of logging tickets and certificates of origin of timber. In addition, the State Enterprise “Forests of Ukraine” has launched a pilot project to procure timber harvesting services through the electronic platform Prozorro.
