Business news from Ukraine

Ukraine cuts exports of semi-finished steel products in tons by 40%

In January-November this year, Ukraine reduced exports of carbon steel semi-finished products in physical terms by 39.5% year-on-year to 1 million 104,735 thousand tons.

According to statistics released by the State Customs Service (SCS), exports of carbon steel semi-finished products in monetary terms amounted to $562.108 million in the period (down 51%).

The main exports were made to Bulgaria (37.01% of supplies in monetary terms), Poland (23.19%) and Italy (9.89%).

In January-November, Ukraine imported 96 tons of semi-finished products from China (98.26%) and Turkey (1.74%) for $172 thousand, in September-November 2022, imports amounted to 5,558 thousand tons of such products.

As reported, in 2022, Ukraine decreased exports of carbon steel semi-finished products in physical terms by 72% compared to the previous year – to 1 million 899.729 thousand tons, and in monetary terms by 70.9% – to $1 billion 191.279 million. The main exports were made to Bulgaria (26.55% of supplies in monetary terms), Poland (13.97%) and Italy (12.13%).

In addition, Ukraine imported 5,558 thousand tons of similar products in 2022, which is 85.7% less than in 2021. In monetary terms, imports decreased by 86% to $3.634 million. Imports were carried out from the Russian Federation (96.92% of supplies before the war), China (1.84%), and Romania (1.21%).

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Ukraine increased exports of scrap metal almost 4 times in 11 months

In January-November of this year, Ukrainian companies increased exports of ferrous scrap by 3.84 times compared to the same period last year, to 161,025 thousand tons, including 14,098 thousand tons of strategic raw materials exported in November.

According to the statistics released by the State Customs Service (SCS), in monetary terms, scrap metal exports amounted to $46.406 million in the period under review (up 2.93 times).

At the same time, the export of scrap metal has been growing since March: in January, about 8.28 thousand tons of scrap were exported, in February – 16.5 thousand tons, in March – 15.45 thousand tons, in April – about 16.19 thousand tons, in May – 21.5 thousand tons. tons, in May – 21.003 thousand tons, in June – 14.6 thousand tons, in July – 9.567 thousand tons, in August – 15.849 thousand tons, in September – 13.7 thousand tons, in October – 15.796 thousand tons, in November – 14.1 thousand tons.

Scrap metal was formally exported to Poland (85.87%), Greece (8.07%) and Bulgaria (2.35%).

In the first two months of the year, the country did not import scrap metal; in March-November, it imported 987 tons of scrap worth $383 thousand (48.04% from Slovakia, 22.45% from Poland, 7.31% from Estonia).

Earlier, Ukrmetallurgprom President Oleksandr Kalenkov stated in a column on the Interfax-Ukraine website that scrap metal is exported through the European Union, which has a preferential export duty of EUR3 per ton, and from there the raw materials are redirected to real customers. He pointed out that exporting raw materials directly to customers would cost EUR180 in export duty, and the Ukrainian budget has already lost UAH 350 million.

According to him, the State Bureau of Investigation has already taken an interest in such export schemes.

The head of Ukrmetallurgprom called for a temporary ban on the export of ferrous scrap to provide steelmakers with strategically important raw materials in the ongoing war. He also clarified that a ton of scrap metal processed into steel brings in 10 times more to the budget than the EU export duty, which is about $300 per ton.

As reported, in 2022, Ukraine reduced exports of ferrous scrap by 11.5 times compared to the previous year to 53,557 thousand tons, while in monetary terms it decreased by 12.4 times to $19.271 million. At the same time, last year the country reduced imports of scrap metal in physical terms by 12.6 times to 1,824 thousand tons. tons, compared to the previous year – to $19.271 million tons, in monetary terms by 12.9 times – to $3.488 million. Imports of scrap metal in 2022 were mainly from Turkey (78.92% of supplies in monetary terms), the Russian Federation (13.25%) and Cyprus (5.08%); exports – to Turkey (38.97%), Poland (34.25%) and Greece (10.12%).

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Ukraine doubled copper imports, reduced exports by 22%

In January-November this year, Ukrainian companies doubled their imports of copper and copper products in value terms compared to the same period last year, to $119.939 million.

According to customs statistics released by the State Customs Service of Ukraine, exports of copper and copper products decreased by 21.8% to $65.172 million over the period.

In November, the country imported copper worth $15.907 million and exported it worth $3.802 million.

In addition, in 11 months of 2023, Ukraine reduced imports of nickel and products by 75.7% compared to the same period in 2022 to $14.366 million ($1.928 million in November), while aluminum and aluminum products increased by 7.6% to $334.511 million ($26.885 million).

At the same time, it reduced imports of lead and lead products by 67.5% to $919 thousand ($28 thousand), imports of tin and tin products by 23% to $2.419 million ($135 thousand), but increased imports of zinc and zinc products by 23.3% to $42.302 million ($4.776 million).

In January-November this year, exports of aluminum and aluminum products decreased by 1.7% compared to the same period last year to $89.183 million ($7.176 million in November), exports of lead and lead products increased by 33.1% to $14.074 million ($1.267 million), and exports of nickel and nickel products amounted to $508 thousand ($251 thousand), while in 11 months of 2022 it was $1.168 million.

Zinc was exported for $117 thousand over 11 months (in November – $19 thousand) against $1.321 million in January-November 2022. Exports of tin and tin products amounted to $79 thousand (up $22 thousand in November) against $423 thousand in 11 months of 2012.

As reported, in 2022, Ukrainian enterprises reduced imports of copper and copper products in value terms by 64.3% compared to the previous year – to $65.370 million, while their exports decreased by 56.3% to $90.245 million.

In addition, in 2022, Ukraine reduced imports of nickel and nickel products by 49.9% compared to 2021, to $59.754 million, and aluminum and aluminum products by 33.4%, to $340.398 million. At the same time, it reduced imports of lead and lead products by 66.6%, to $2.839 million.

Imports of tin and tin products fell by 33.5% to $3.312 million, and imports of zinc and zinc products decreased by 58.7% to $38.690 million.

In 2022, exports of aluminum and aluminum products decreased by 42.7% compared to 2021, to $96.972 million, lead and lead products – by 68.7%, to $11.970 million, and nickel and nickel products – by 73.9%, to $1.268 million.

Zinc exports in 2022 amounted to $1.331 million, while in 2021 they amounted to $550 thousand. Exports of tin and products in 2022 amounted to $424 thousand, compared to $346 thousand in the previous year.

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Ukraine reduced foreign exchange earnings from ferrous metals exports by 44.2%

In January-November of this year, Ukraine’s steelmaking companies reduced their earnings from ferrous metal exports by 44.2% year-on-year to $2 billion 433.191 million.

According to statistics released by the State Customs Service (SCS) on Friday, ferrous metals accounted for 7.38% of total export revenues during this period, while the share was 10.7% in the first eleven months of 2022.

In November, revenues from exports of ferrous metals amounted to $174.380 million, while in the previous month they amounted to $175.8671 million.

At the same time, Ukraine increased imports of similar products by 38.7% to $1 billion 199.391 million over 11 months of this year. In November, the country imported products worth $96.342 million.

In addition, in January-November, Ukraine reduced exports of metal products by 16.4% year-on-year to $821.833 million. In November, exports were worth $57.282 million.

At the same time, imports of steel products increased by 40% to $828.388 million over the same period. In November, Ukraine received $105.347 million worth of these products.

As reported earlier, in 2022, Ukraine’s steelmaking companies reduced revenues from ferrous metal exports by 67.5% compared to 2021, to $4 billion 533.088 million. During this period, ferrous metals accounted for 10.26% of total revenues from exports of goods, compared to 20.49% in 2021. At the same time, last year Ukraine reduced imports of similar products by 38.3% to $954.387 million.

In addition, in 2022, Ukraine reduced exports of metal products by 18.6% to $1 billion 52.512 million. Imports of metal products fell by 42.9% to $643.162 million over the year.

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Ukraine agrees with Romania to increase exports

The Ministry of Communities, Territories and Infrastructure of Ukraine (Ministry of Reconstruction) has agreed on a number of issues to increase Ukraine’s export opportunities during its third meeting in Romania, including an agreement on night navigation on the Sulina Canal, said Oleksandr Kubrakov, Deputy Prime Minister for Reconstruction of Ukraine, Minister of Communities, Territories and Infrastructure.
“We are returning with a decision on night navigation on the Sulina Canal. It has already started working. We are waiting for our Romanian colleagues to provide the necessary number of pilots. In this case, we will reach 4 million tons of export capacity per month,” Kubrakov wrote on Facebook.
According to the deputy prime minister, joint work is also underway to increase the capacity of rail and road checkpoints in a quadripartite format: Romania – the United States – the European Commission – Ukraine with the participation of Moldova. The focus is on two key issues: the approval of a pilot project at the Krasnoilsk-Vicovu de Sus checkpoint for trucks, as well as a “green corridor” between Ukraine, Moldova, and Romania through the Reni Giurgiulesti – Galati checkpoints.
Kubrakov clarified that the repair work at the Reni checkpoint, which began in November to create conditions for joint control with Moldova, will be completed in the first quarter of 2024.
The Ukrainian side called on Romanian colleagues to increase the number of phytosanitary and veterinary control specialists at the border.
The fast and rhythmic operation of export routes remains a strategic direction of work, Kubrakov emphasized.
Over 11 months of operation, the total volume of transshipment through Ukrainian Danube ports amounted to almost 30 million tons.

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Ukrzaliznytsia transported record 6.08 mln tons of cargo for export

In November 2023, Ukrzaliznytsia JSC transported a record 14.13 million tons of cargo, which is 33.8% more than the average monthly volume of traffic during the year, said Valery Tkachev, Deputy Director of the Commercial Department of UZ, at a meeting with agricultural exporters on Thursday.

According to his information, 6.08 million tons were transported in the export direction in November, which is 24.7% more than a month earlier. This is also the highest figure in 2023.

“The main growth was due to the partial resumption of cargo shipment from the ports of Odesa,” explained Tkachev.

It is specified that in the structure of export transportation in November 2023, the first place was taken by grain cargo – 2.43 million tons (39.9%), the second place was taken by iron and manganese ore – 2.32 million tons (38.1%), and the third place was taken by ferrous metals – 0.41 million tons (6.7%).

In addition, in January-November 2023, the volume of grain cargo transported by UZ amounted to 19.989 million tons, which is 150.6 thousand tons, or 0.8%, more than in the same period of 2022. In November, the company exported 2.43 mln tonnes of grain cargo, up 40.4% (700 thsd tonnes) compared to the previous month. The structure of November cargo transportation of agricultural products was dominated by corn – 1,406.0 thsd tonnes (57.8%), wheat – 514.0 thsd tonnes (21.1%), and industrial crops – 442.5 thsd tonnes (18.2%).

At the same time, in November, the transportation of grain cargoes to the ports amounted to 1 713.4 thsd tonnes, or 70.5%, which is 1.7 times more than in October 2023.

“We had some suspensions due to bad weather at the end of November. Unfortunately, due to the aggressor’s strikes, we still have such indicators. But thanks to the operation of the temporary (sea grain – IF-U) corridor, we see good dynamics of grain cargo transportation,” stated Tkachev.

He noted that the average daily load in November amounted to 91 thousand tons of cargo, which is 20% higher than in October.

During the first week of December, UZ handled 429.1 thousand tons, of which 18.4% was grain cargo. The average daily load amounted to 79.2 thousand tons. Tkachev explained the decline in this figure compared to November by the weekend, during which elevators were closed.

During this period, 349.58 thousand tons of cargo were transported to seaports and 113.87 thousand tons were transported by land.

“For every 1 ton of cargo overloaded and transported in the direction of the western crossings, there are 3 tons of cargo transported in the direction of the ports, i.e. a ratio of 1:3. This is the usual proportion in the best periods of Ukrzaliznytsia’s operation, which remains the same,” said the UZ representative.

In December 2023, exports of oilcake through border crossings amounted to 59.61 thousand tons, and vegetable oil – 33.79 thousand tons.

As of December 7, the queue at the western border crossings amounted to 9.3 thousand cars, which is 8.4% less than the day before.

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