The enterprises on operations with scrap ferrous metals in January-February this year, reduced the procurement of scrap metal by 70.7% compared to the same period last year – to 152.2 thousand tons from 520.4 thousand tons.
As reported in the operational information of the Ukrainian Association of Secondary Metals (UAVtormet) on Friday, the export of scrap metal during this period amounted to 24.8 thousand tons compared to 7.1 thousand tons in January-February 2022 (an increase of 3.5 times). In this case, the import of scrap was 0.04 thousand tons, whereas in the first two months of last year it was 0.1 thousand tons.
Scrap supplies to the country’s metal companies in January-February 2023 decreased by 75.3% compared to January-February 2022 – to 120.2 thousand tons from 488.5 thousand tons.
As of March 1, 2023, the level of scrap metal stock at metal companies in Ukraine was estimated at 15-20 thousand tons.
As reported earlier by UAVtormet, Ukraine in 2022, reduced the procurement of scrap metal by 75.9% compared to the previous year – up to 996.7 thousand tons from 4.136 million tons. The export of scrap metal last year was 53.6 thousand tons, which is 11.5 times less than in 2021 (615.7 thousand tons). At the same time the import of scrap was 1.8 thousand tons, compared to 23 thousand tons in 2021.
Scrap supplies to steel companies in the country last year decreased by 73% compared to 2021 – to 895.7 thousand tons from 3 million 323.4 thousand tons.
“UAVtormet predicts a decrease in the procurement of scrap ferrous metals to 850 – 880 thousand tons this year. In addition, it is projected that in 2023 the supply of scrap metal to metal companies in the country will be reduced to 720-750 thousand tons. Scrap exports are expected to amount to 80-120 thousand tons. Steel production in 2023 will be 3.6-3.7 million tons.
Ruslan Gashev, Head of the Export Credit Agency (ECA), announced at the Summit of Exporters held by Forbes Ukraine in Kyiv that in 2022 it supported 35 exporters for UAH 3.18 billion and is ready to increase export support up to UAH 18 billion this year.
He pointed out that the agency is capable of such volume of activities without increasing the nominal capital.
Gashev also announced that in the nearest future the number of Ukrainian banks-partners to ECA under the program of portfolio credit insurance will increase from six to seven.
According to the head of the agency, the ECA may also become a tool of activity in Ukraine for the Multilateral Investment Guarantee Agency (MIGA) from the World Bank Group and the U.S. Corporation for International Development Finance (DFC), which do not have their own representative offices in Ukraine.
“Even in those projects where MIGA and DFC risk insurance will be involved, we can be their ‘hands’ because they do not have their own offices in Ukraine,” Gashev explained.
He clarified that this issue has already been discussed with the DFC, and the ECA has sent its proposal, while the Ministry of Economy is still working with MIGA without the agency’s participation.
The head of ECA also supported the initiative contained in the draft law “On Amendments to the Law on Financial Mechanisms to Encourage Export Activities in relation to Investment Insurance against Military Risks in Ukraine” (#9015) to expand the ECA’s mandate to insure investments in Ukraine.
“When we approach our foreign partners, especially such structures as MIGA and DFC, to insure Ukrainian and foreign investments in Ukraine, we also have to think about how to use the tools we have in the country,” Gashev said.
He stressed that we are talking about insurance not only of foreign investments, but also domestic ones. According to him, the document has not been introduced at the meeting of the Profile Committee, but it is being worked on.
Since the beginning of the year (as of March 13) ECA has supported export from Ukraine in the amount of 242.35 million UAH (11 agreements). Banks financed UAH 43.5 million. Exports were made to France, Germany, Latvia, Poland, Switzerland, and the USA. The leaders among the branches according to the results of two months of 2023 are furniture industry, the second place is taken by toys and further by rubber, rubber and rubber goods.
Ukrainian enterprises in January reduced exports of aluminum and its products by 33.7% compared to January 2022 – to $6.776 million, lead and its products by 41.4% – to $1.633 million, nickel and nickel products – $3 thousand, whereas in January 2022 it was $397 thousand.
Exports of aluminum and aluminum products for 2022 fell 42.7% from 2021 to $96.972 million ($6.330 million in December), lead and aluminum products fell 68.7% to $11.970 million ($1.396 million) and nickel and aluminum products fell 73.9% to $1.268 million ($0.1 million).
Export of Ukraine by countries in Jan-Nov 2022
Source: Open4Business.com.ua and experts.news
Source: Open4Business.com.ua and experts.news
Ukraine exported 9.1 million tons of goods in February 2023 compared to 7.89 million tons in January, in monetary terms it rose to $3.32 billion from $3.1 billion, wrote Deputy Minister of Economy – Trade Representative of Ukraine Taras Kachka in Facebook.
“But less than the peak military September (9.6 million tons) and, of course, still a long way to 12.8 million tons in February 2022 … Since September there is a trend of slow decline in the value of exports: 4.1 – 3.8 – 3.8 – 3.48 – 3.1 – 3.32 billion dollars. The reasons are clear – the slowdown of the grain corridor and the price correction on the world market,” he added.
He said the value of imports in February was $5.03 billion.
“However, this is good news, because imports in war conditions is the reliability of supply of everything we need: fuel, pharmacy, generators and everything we need to endure. It is also fertilizers for the sowing season,” noted Kachka, without specifying the data for January.
He recalled that in general 2022 set a clear strategy in trade: to ensure security of supply in imports, restore logistics capabilities for exports and reduce the trade deficit through services.
The Ukrainian trade representative pointed out that last year merchandise exports totaled $44.1 billion and imports $55.2 billion, services exports $9.1 billion and imports $3.0 billion.
Kachka specified that the top ten most exported goods in February 2023 in descending order of value formed corn (code 1005) – $699.3 million, sunflower oil (1512) – $419.3 million, wheat (1001) – $322, 9 million, soybeans (1201) – $128.69 million, iron ore (2601) – $125.5 million, insulated wires (8544) – $82.9 million, sunflower meal (2306) – $75.4 million, pig iron (7201) – $65.03 million, poultry (0207) – $58.76 million and sunflower seeds (1206) – $58.69 million.
In the second ten, seamless pipes (7304) – $56.88 million, barley (1003) – $43.9 million, semi-finished iron products (7207) – $36.1 million, sugar (1701) – $34.1 million, ferroalloys (7202) – $33, 6 million, furniture (9403) – $32.38 million, rapeseed (1205) – $32.37 million, lumber (4407) – $31.4 million, soybean meal (2304) – $28.9 million and seating furniture (9401) – $24.9 million.
Finally in the third top ten are electric water heaters (8516) – $24.3 million, soybean oil (1507) – $24.1 million, plywood (4408) – $19.9 million, drugs (3004) – $19.1 million, hot rolled steel (7208) – $16.04 million joinery products (4418) – $15.8 million, juices (2009) – $15.5 million, confectionery, bakery products (1905) – $13.7 million, crates and boxes (4415) – $13.1 million and confectionery sugar products (1704) – $12.9 million.
