Metallurgical enterprises of Ukraine in January-May of this year reduced revenues from exports of ferrous metals by 60.7% compared to the same period last year – to $ 1 billion 136.465 million.
According to the statistics, promulgated by the State Customs Service (SCC), during this period, ferrous metals accounted for 6.91% of total revenues from the export of goods against 14.8% in January-May 2022.
In May, the proceeds from the export of ferrous metals amounted to $313.168 million, while in the previous month – $239.718 million.
At the same time, Ukraine increased imports of similar products for five months of this year by 46.3% – to $485.619 million. In May, Ukraine imported products for $124.560 million.
In addition, in January-May, Ukraine has practically kept the export of metal products at the level of five months of the previous year – $424.450 million. In May, they exported by $90.854 million.
At the same time, imports of metal products in the first five months of the year rose by 21.4% – to $285.893 million. In May, Ukraine exported these goods for $64.168 million.
As reported, metallurgical enterprises of Ukraine in January-April 2023 decreased export revenues of ferrous metals in 3.2 times compared to the same period last year – up to $ 823.406 million. At the same time, the country increased imports of similar products by 27.4% – to $ 360.802 million. In addition, Ukraine reduced exports of metal products by 0.6% to $334.065 million in January-April, while imports of metal products in the first four months of the year rose by 11.1% – to $221.719 million.
Metal companies in Ukraine in 2022, revenues from exports of ferrous metals decreased by 67.5% compared to 2021 – up to $4 billion 533.088 million – the ferrous metals accounted for 10.26% of total revenues from the export of goods during this period against 20.49% in 2021. At the same time, Ukraine has reduced imports of similar products last year 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 for the year fell by 42.9% – to $ 643.162 million.
The association of enterprises “Ukrmetallurgprom” considers it necessary to temporarily ban the export of scrap ferrous metals to provide metallurgical enterprises with strategically important raw materials in the conditions of the ongoing war.
“If scrap metal will remain in the country – more than 500 thousand people will have a job, and the country will have millions of foreign exchange earnings from the export of steel. At the same time, the military also benefits – because metallurgists help the fighters a lot, buying for them equipment and cars, and even producing body armor. Nobody benefits from the export of scrap metal. So now the authorities should be proactive and temporarily ban exports until the situation stabilizes and stops threatening national economic security,” wrote Ukrmetallurgprom President Oleksandr Kalenkov in his column on the Interfax-Ukraine website.
According to him, since the beginning of the war Ukraine’s mining and metallurgical complex has been experiencing the worst crisis since independence. A large part of the enterprises have been seized or destroyed by the occupiers, while others are trying to work under constant shelling and partial loss of capacity. The blockade of sea ports has led to the fact that the geography of customers has almost halved, and with it the volume of supply of products.
Nevertheless, enterprises are trying to hold on and even increase production, because they realize the level of responsibility entrusted to them. More than half a million Ukrainians work in the metallurgical and allied industries, and MMC’s share in Ukraine’s GDP is over 10%.
“But the reality throws up new challenges every time. One of them was the shortage of scrap metal, without which it is impossible to increase the metallurgical production”, – said the head of the association.
He named the reasons for the deficit: the occupation of the eastern regions, where traditionally significant volumes of raw materials have been procured (the volume of this raw materials has decreased by almost 80%). At the same time the export of scrap metal has increased sharply: only in the first two months of 2023 about 25 thousand tons were exported, which is almost 60% more than in November-December 2022.
“Given the growth rate of the export indicator, at the end of the year we may see a figure of 250 or even 300-400 thousand tons of exports – and this is absolutely unacceptable for a market that can barely collect about 1 million tons of scrap metal per year. After all, the industry will require more than a million – even in conditions of incomplete resumption of production,” wrote the president of Ukrmetallurgprom.
“Now the situation with the shortage has worsened and began to lead to temporary, but so far, production stoppages. However, the issue must be resolved. And the volume of production instead of growing, will fall to a minimum. This, in turn, will provoke a spiral of new problems not only for the industry, but also for the economy – because, let me remind you, even in the toughest year of 2021 the MMC enterprises paid to the budgets over 42 billion gon. And this is exactly the funds, for which Ukraine can build up its military potential and win on the battlefield”, stated Kalenkov.
He added that Ukraine, losing money because of the drop in production, does not earn anything from scrap metal export – the raw material is exported via the European Union, where a favorable export duty of EUR3 is applied, and from there it is redirected to the actual customers. To export raw material directly to customers would cost EUR 180 export duties and the Ukrainian budget lost already EUR 350 mln on it. Not surprisingly, the State Bureau of Reconstruction and Development has already taken an interest in the export schemes and has already launched an investigation.
As Mr. Kalenkov explained, 1 ton of scrap metal processed by the president of Ukrmetallurgprom into steel gives 10 times more to the budget than the export duty payable to the EU – about $300 per ton. Therefore, the question whether to export raw materials or leave them in the country for processing, should not be – the benefits are obvious, he summarizes.
As reported in the middle of 2021, Ukrmetallurgprom asked to ban the export of scrap until the end of 2023. With a corresponding request Ukrmetallurgprom appealed to the Prime Minister of Ukraine Denis Shmygal in a letter dated July 8, 2021.
According to the Ukrainian Association of Secondary Metals (UAVtormet), the export of scrap metal in January-February 2023 amounted to 24.8 thousand tons compared to 7.1 thousand tons in January-February 2022 (an increase of 3.5 times).
Metallurgical enterprises of Ukraine in January this year reduced revenues from ferrous metals exports 6.2 times compared to the same period last year – to $165.690m.
According to the statistics released by the State Customs Service (SCS), ferrous metals accounted for 5.29% of total revenues from the export of goods during this period against 17.01% in January-2022.
At the same time, Ukraine reduced imports of similar products by 50% to $68.593 million in January this year.
In addition, Ukraine reduced exports of metal products by 48.8% to $62.127 million in January, while imports of metal products decreased by 35.2% – to $51.263 million.
As reported, metallurgical enterprises of Ukraine in 2022, revenues from exports of ferrous metals decreased by 67.5% compared to 2021 – to $4 billion 533.088 million – ferrous metals during this period amounted to 10.26% of total revenues from the export of goods against 20.49% in 2021. In December 2022, the proceeds from exports of ferrous metals amounted to $173.944 million, while in November – $205.647 million.
At the same time, last year, Ukraine reduced imports of similar products by 38.3% – to $954.387 million. In December, it was imported by $89.275 million.
In addition, in 2022, Ukraine reduced exports of metal products by 18.6% – to $ 1 billion 52.512 million, in December, they were delivered for $ 69.285 million.
Imports of metal products last year decreased by 42.9% – to $643.162 million (in December – $67.705 million).
Metallurgical enterprises of Ukraine in January-November this year, revenues from exports of ferrous metals decreased by 65.4% compared to the same period last year – up to $4 billion 359.303 million.
According to statistics released by the State Customs Service (SCS), during this period, ferrous metals accounted for 10.7% of total revenues from the export of goods against 20.6% in January-November 2021.
In November, revenues from exports of ferrous metals amounted to $205.647 million, while in October – $189.836 million.
At this, Ukraine reduced imports of similar products by 38.5% to $865.047 million in January-November this year, while in November it was imported by $95.612 million.
In addition, during this period, Ukraine reduced exports of metal products by 15.6% – to $983.533 million. In November, they were delivered to $79.050 million.
Imports of metal products in January-November decreased by 41.4% – to $ 591.598 million (in November – $58.052 million).
As reported, Ukraine in 2021 increased foreign exchange earnings from the export of ferrous metals by 81.4% compared to 2020 – up to $ 13 billion 951.117 million. Ferrous metals accounted for 20.5% of total revenues from the export of goods during this period against 15.63% in 2020.
At the same time, Ukraine has increased imports of similar products in 2021 by 48.8% – to $ 1 billion 547.477 million.
In addition, Ukraine has increased exports of metal products in 2021 by 43% – to $ 1 billion 293.199 million.
Imports of metal products last year increased by 28% to $1 billion 125.908 million.
Ukrainian enterprises in January-October this year, reduced the export of scrap ferrous metals in 13.3 times compared to the same period last year – up to 37.774 thousand tons.
According to statistics released by the State Customs Service (SCS), in monetary terms, the export of scrap metal during this period decreased by 13.4 times – to $14.589 million.
At the same time, the country has reduced the import of scrap metal in volume terms by 11.7 times to 1.691 thousand tons for ten months. In monetary terms, the import of scrap decreased by 10.8 times – to $ 3.453 million.
In addition, steel companies in Ukraine in January-October 2022, did not import products of direct reduction of iron ore to code 7203 – hot briquetted iron, which is a substitute for pig iron and scrap, but exported 258 tons of these products to India (100%) amounting to $ 48 thousand.
As reported, Ukraine in 2021 increased exports of scrap metal in 17.2 times compared to the previous year – up to 615.687 tons. In monetary terms, exports of scrap metal increased by 25.2 times to $238.895 million.
In 2021, the country reduced imports of scrap metal by 13.1% in volume terms, to 22.964 thousand tons. In monetary terms, scrap imports increased by 72.4% to $44.883 million.
Imports of scrap metal in 2021 was carried out mainly from Turkey (60.42% of supplies in monetary terms), Russia (33.44%) and Belarus (1.57%); exports – to Turkey (84.85%), Romania (6.66%) and Poland (3.45%).
In addition, steel companies in Ukraine in 2021 imported from Russia 1.603 tons of products of direct reduction of iron ore to code 7203 – hot briquetted iron (HBI), which is a substitute for pig iron and scrap, worth $ 653 thousand, while in 2020 – 2.648 tons to $ 805 thousand. In this case, the export of products to India was 288 tons to $91 thousand.
Metallurgical enterprises of Ukraine in January-August this year reduced revenues from the export of ferrous metals by 58% compared to the same period last year – to $3 billion 724.478 million from $8 billion 917.510 million.
According to statistics released by the State Customs Service (SCS), ferrous metals accounted for 12.86% of total merchandise export earnings over this period compared to 21.34% in January-August 2021.
In August, proceeds from the export of ferrous metals amounted to $234.658 million.
At the same time, in January-August of this year, Ukraine reduced imports of similar products by 37.8%, to $558.954 million. In August, it was imported for $85.439 million.
In addition, during the specified period, Ukraine reduced the export of metal products by 8.9% – to $703.130 million. In August, they were delivered for $70.961 million.
Imports of metal products in January-August decreased by 40.3% – to $413.181 million (in August – $61.941 million).
As reported, Ukraine in 2021 increased foreign exchange earnings from exports of ferrous metals by 81.4% compared to 2020, to $13 billion 951.117 million. Ferrous metals accounted for 20.49% of total revenues from exports of goods over this period against 15 .63% for 2020.
At the same time, Ukraine increased imports of similar products by 48.8% in 2021, to $1 billion 547.477 million.
In addition, Ukraine in 2021 increased the export of metal products by 43% – up to $1 billion 293.199 million.
Imports of metal products over the past year increased by 28% – up to $1 billion 125.908 million.
