Business news from Ukraine

Ukraine has exported 50 million tons of cargo through maritime corridor since August 2023

The maritime corridor created by the Navy has ensured the export of 50 million tons of cargo since August 2023, with 1,737 vessels handled at the ports, the Ministry of Community Development, Territories and Infrastructure (MCDI) said.

“50 million tons of cargo were exported by the Ukrainian Sea Corridor in 9 months. Despite constant attacks by the Russians, Ukrainian port workers managed to handle 1,737 vessels,” the Ministry said in a Facebook post on Saturday.

Thanks to the combined efforts of the government, the Administration of Sea Ports of Ukraine, international partners and all employees of the port industry, it was possible to establish a stable export of Ukrainian agricultural products by sea, the report said.

The Facebook of the Administration of Sea Ports (AMPU) reports that the Black Sea ports have reached a record volume of cargo processing.

“Starting with the first Joseph Shulte vessel that left the Ukrainian corridor on August 16, 2023, Ukrainian Black Sea ports have processed this record volume of cargo despite constant enemy attacks on our critical infrastructure. This is 1,737 vessels handled!”, – AMPU said in a statement.

Last Thursday, the fact that exports through the sea corridor reached 50 million tons was reported by Yuriy Vaskov, former Deputy Minister of Development of Communities, Territories and Infrastructure (Ministry of Restoration).

The head of the Administration of Sea Ports of Ukraine (AMPU), Yuriy Litvin, reported that the results of the Ukrainian “grain corridor” almost one and a half times exceeded the indicators of the Black Sea Grain Initiative. According to him, the indicator of transportation of only grain cargoes for eight months is already 10% higher than the results of the “grain initiative” for the year.

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Ukraine increases exports of granulated slag to EU by 53%

Ukraine increased its exports of granulated slag to the EU in 2023 to 367 thousand tons, up 53% compared to 2022, of which 324.5 thousand tons (+47.5% compared to 2022) were supplied by Recycling Solutions, the company’s press service reports.

“We have managed to attract new customers and expand our sales market, despite the fact that the European construction sector is going through a crisis. Europe lacks its own similar raw materials, and Ukraine can meet the demand of European manufacturers. For us, this is an opportunity to support the national economy and ensure the inflow of foreign currency into the country,” Vadym Khoroshko, Director of the Construction Admixtures Department, explained in a press release.

According to the published data, the total volume of granulated slag imports to the EU countries in 2023 amounted to 3.35 million tons. The leading suppliers are Japan (1.2 million tons), China (0.7 million tons), Turkey (0.7 million tons) and Ukraine. The main consumers of this product are cement plants, which are currently operating unstably due to lower demand. The European construction market and road construction have slowed down significantly. On the other hand, the launch of the Carbon Based Import Adjustment Mechanism (CBAM) in October 2023 is having a positive impact on the waste and by-products market. In the spring, a new cement production season begins, in which Recycling Solutions expects demand to remain at the level of 2023, the press release said.

It is reported that in 2023, 44% of construction admixtures sold by Recycling Solutions were exported. The largest volumes were purchased by customers from Poland and Slovakia. In addition to slag, last fall the company was the first Ukrainian producer to export 1380 tons of dry ash.

The company also notes an increase in sales in the domestic market, explaining that demand for construction admixtures is driven by reconstruction projects and the emergence of small tenders for road resurfacing. In particular, last year Recycling Solutions shipped 407.2 thousand tons of granulated slag to Ukrainian customers, which is 69% more than last year. The company also sold 363.3 thousand tons of dump slag used for road construction and emergency repairs, and shipped 282 thousand tons of other ash and slag materials, 30% more than in 2022.

In addition, last year Recycling Solutions launched an aluminosilicate microsphere production plant in Burshtyn, Ivano-Frankivsk region. The company operates on equipment evacuated in 2022 from Druzhkivka (Donetsk region), which was located in close proximity to the front line. Investments in the project amounted to $313 thousand. The launch of production made it possible to ship 521 tons of microspheres in 2023.

Recycling Solutions was founded in 2012 and is part of Rinat Akhmetov’s umgi investment company. It provides strategic by-product and waste management services. Currently, it is an integrated operator of secondary resources management for the coal, metallurgical, heat and power, and agricultural sectors of Ukraine. The company’s activities include processing and sale of ash and slag materials, metallurgical slag, rare and industrial gases, ammonium sulphate, livestock by-products, and production of heat and electricity from coal mine methane.

umgi founded SCM in 2006 to manage assets in the raw materials sector. Later, it expanded its range of activities and changed its business model from management to investment. The total market value of its portfolio companies exceeds $500 million.

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Ukrainian mining companies increased iron ore exports by 2.1 times

In January-April this year, Ukrainian mining companies increased exports of iron ore in physical terms by 2.1 times compared to the same period last year, to 11 million 28,545 thousand tons.

According to statistics released by the State Customs Service (SCS) on Friday, foreign exchange earnings from iron ore exports increased 4.1 times to $2 billion 409.852 million over the period under review.

At the same time, 9 million 4.370 thousand tons of iron ore worth $863.315 million were exported in 3 months of 2014.

Iron ore was exported mainly to China (43.03% of supplies in monetary terms), Slovakia (16.29%) and Poland (13.67%).

In January-April 2024, Ukraine imported iron ore worth $72 thousand in a total volume of 252 tons, while in January-April 2023, it imported $41 thousand in a total volume of 67 tons. Imports were carried out from the Netherlands (29.17%), Italy (25%) and Norway (18.06%).

As reported, in 2023, Ukraine decreased the export of iron ore in physical terms by 26% compared to 2022 – to 17 million 753.165 thousand tons, foreign exchange earnings from iron ore exports amounted to $1 billion 766.906 million (down 39.3%). Iron ore was exported mainly to Slovakia (28.39% of supplies in monetary terms), the Czech Republic (19.74%) and Poland (19.56%).

Last year, Ukraine imported iron ore worth $135 thousand in the total amount of 250 tons. During this period, imports were made from Norway (34.81%), Italy (28.89%) and the Netherlands (28.89%). While in 2022, iron ore was imported for $65 thousand in a total volume of 101 tons.

In 2022, Ukraine decreased exports of iron ore in physical terms by 45.9% compared to 2021 – to 23 million 984.623 thousand tons, while foreign exchange earnings decreased by 57.8% to $2 billion 912.974 million. Iron ore was exported mainly to Slovakia (19.23% of supplies in monetary terms), the Czech Republic (17.32%) and Poland (16.49%).

In 2022, Ukraine imported iron ore worth $65 thousand in a total volume of 101 tons, while in 2021 – $184 thousand in a volume of 1,202 thousand tons. Imports were carried out from Norway (36.92%), the Netherlands (27.69%) and the UK (16.92%).

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Scrap collectors increased scrap supplies to steelmakers by 52%, exports up 55%

In January-April of this year, ferrous scrap companies increased scrap supplies to Ukrainian steelmakers by 52.3% year-on-year to 446 thousand tons from 292.8 thousand tons.

As reported in the operational information of the Ukrainian Association of Secondary Metals (UAVtormet) on Monday, scrap metal procurement in the first four months of this year increased by 53.7% compared to the same period last year – up to 563.4 thousand tons from 366.6 thousand tons.

At the same time, exports of scrap metal for the period amounted to 87.4 thousand tons compared to 56.4 thousand tons in January-April 2023 (an increase of 54.9%). At the same time, imports of scrap amounted to 0.34 thousand tons compared to 0.06 thousand tons in 4 months of 2023.

As of May 1, 2023, the level of scrap metal stocks at Ukrainian steelmaking enterprises was estimated at 25-30 thousand tons.

In 2024, companies dealing with ferrous scrap may increase their scrap procurement by 37-45% year-on-year to 1.75-1.85 million tons.

According to UVTORMET’s forecast, Ukraine will produce 7-7.2 million tons of steel in 2024 (6.228 million tons in 2023 and 6.263 million tons in 2022) and procure 1.75-1.85 million tons of scrap metal (1,277.3 thousand tons in 2023 and 996.7 thousand tons in 2022). Steelmakers are also expected to consume 1.4-1.5 million tons of scrap (1 million 34.7 thousand tons in 2023 and 895.7 thousand tons in 2022) and export 250-300 thousand tons of scrap (182.5 thousand tons and 53.6 thousand tons, respectively), increasing the export of strategic raw materials for steelmakers by 37-64% compared to last year.

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Ukraine increases copper imports by 41%, decreases exports by 8%

In January-April this year, Ukrainian companies increased imports of copper and copper products by 41.4% in value terms compared to the same period last year, to $53.034 million.

According to customs statistics released by the State Customs Service of Ukraine on Friday, exports of copper and copper products decreased by 8.1% to $25.077 million over the period.

In April, Ukraine imported $11.015 million worth of copper and exported $6.949 million.

In addition, in January-April 2024, Ukraine increased imports of nickel and products by 60.1% compared to the same period in 2023 to $8.484 million (in April – $787 thousand million), aluminum and aluminum products by 26.6% to $136.761 million (in April – $38.235 million).

At the same time, it reduced imports of lead and lead products by 13.8% to $406 thousand (in April – $124 thousand), imports of tin and tin products increased by 10.2% to $887 thousand (in April – $267 thousand), and increased imports of zinc and zinc products by 59.9% to $17.217 million (in April – $5.357 million).

Exports of aluminum and aluminum products in the first four months of 2024 increased by 5% compared to the same period a year earlier to $33.008 million (in April – $9.608 million), lead and lead products decreased by 35.3% to $3.537 million (in April – $703 thousand), nickel and nickel products amounted to $217 thousand (in April – $123 thousand), while in January-April 2023 it was $104 thousand.

Zinc exports for the first four months of this year amounted to $73 thousand (in April – $29 thousand), while in January-April 2023 it amounted to $48 thousand. Exports of tin and products amounted to $107 thousand (in April – $26 thousand) against $48 thousand in the same period a year earlier.

As reported, in 2023, Ukraine increased imports of copper and copper products by 2.2 times compared to 2022 – up to $140.795 million, while exports decreased by 20.1% to $72.078 million.

In addition, in 2023, Ukraine decreased imports of nickel and products by 74.2% compared to 2022, to $15.391 million, and increased imports of aluminum and aluminum products by 7.7%, to $366.463 million.

At the same time, it reduced imports of lead and lead products by 65.2% to $989 thousand, imports of tin and tin products by 23% to $2.728 million, but increased imports of zinc and zinc products by 18.8% to $45.966 million.

Exports of aluminum and aluminum products last year increased by 0.7% compared to 2022 to $97.616 million, lead and lead products increased by 23.5% to $14.778 million, and nickel and nickel products amounted to $532 thousand, while in 2022 it was $1.268 million.

In 2023, the company exported $130 thousand worth of zinc, compared to $1.331 million in 2022. Exports of tin and tin products amounted to $159 thousand against $424 thousand in 2022.

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, while 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 increased exports of dairy products by 17.8% and imports by 27.4%

In April, Ukraine increased its total foreign trade in dairy products by 10.7% compared to March to $41.4 million and by 20% compared to February, the press service of the Union of Dairy Enterprises of Ukraine (UDEP) reported.

According to the report, exports of dairy products were 17.8% higher compared to March, amounting to $17.1 million, and 11% higher compared to February, up to $15.4 million.

At the same time, import volumes increased by 6.2% compared to March and amounted to $24.3 million, which is 27.4% higher than in February, when it was recorded at $19.1 million.

Experts pointed out that imports in April were 1.43 times higher than exports. In March, this figure was 1.58 times higher than in February, in February – 1.24 times higher than in January, in January – 1.93 times higher than in December.

“In April 2024, the situation with exports of dairy products improved – they were exported for $ 17.1 million – the last time such volumes were recorded in June 2023. However, import volumes continued to grow – up to $ 24.3 million, which corresponds to the level of January-2024 (imports have been growing for the 2nd month in a row),” the UMPU stated.

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