Business news from Ukraine

Business news from Ukraine

Ukrnafta increases imported fuel supplies

In 2024, PJSC Ukrnafta increased the volume and expanded the geography of imported fuel supplies from global producers to the country, the company’s press service reported on Facebook.

According to the press service, while last year the company imported fuel from the United States, Sweden, Poland, and Greece, in 2024 it also began importing large wholesale consignments from Denmark, Slovakia, and Turkey.

“All fuels produced by such powerful companies as Orlen, HELLENiQ ENERGY, Marathon Petroleum Company and others have the appropriate certificates and, due to their optimal characteristics, are guaranteed to preserve engine life. We invite you to visit Ukrnafta filling stations and guarantee that your car will be satisfied with our quality,” the statement says.

“Ukrnafta is the largest oil company in Ukraine and operates a national network of 537 filling stations, of which 456 are in operation. The company is implementing a comprehensive program to restore operations and update the format of its filling stations. Since February 2023, Ukrnafta has been issuing its own fuel coupons and NAFTAKarta cards, which are sold to legal entities and individuals through Ukrnafta-Postach LLC.

Ukrnafta’s largest shareholder is Naftogaz of Ukraine with a 50%+1 share. On November 5, 2022, the Supreme Commander-in-Chief of the Armed Forces of Ukraine decided to transfer to the state a share of corporate rights of the company owned by private owners, which is now managed by the Ministry of Defense.

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Ukraine’s rolled steel market declined by quarter, with imports accounting for 46% of total

In January-February this year, Ukrainian enterprises reduced their consumption of rolled metal products by 24.95% year-on-year, down to 370.2 thousand tons from 493.3 thousand tons.

According to a press release issued by Ukrmetallurgprom on Thursday, 171.2 thousand tons, or 46.25% of the domestic rolled steel market, were imported during this period.

According to Ukrmetallurgprom, in January-February 2024, steel companies produced 900 thousand tons of rolled metal products (152.5% compared to the same period in 2023), of which, according to the State Customs Service of Ukraine, about 701 thousand tons, or 77.9%, were exported. In January-February 2023, the share of exports amounted to 38.5% (227 thousand tons with a total production of 590 thousand tons of rolled metal products).

The share of semi-finished products in export deliveries in January-February 2024 amounted to 47.50%, which is the same as in January-February 2023 (47.58%). The share of flat products in export deliveries significantly exceeded the figure for January-February 2023 (38.66% and 28.19%, respectively), while the share of long products was significantly lower than in January-February 2023 (13.84% in 2024 vs. 24.23% in 2023).

“In January-February 2024, the domestic market capacity amounted to 370.2 thousand tons of rolled steel, of which 171.2 thousand tons or 46.25% were imported. In January-February 2023, the domestic market capacity amounted to 493.3 thousand tons, of which 130.3 thousand tons, or 26.41%, were imported. Thus, in January-February 2024, there was a decrease in the domestic market capacity by 24.95% compared to two months of 2023, with a simultaneous increase in the share of the import component by 19.84%,” the press release states.

The structure of imports in January-February 2024 is still characterized by a significant dominance of flat products over long products (85.05% and 13.67%, respectively); in January-February 2023, the dominance of flat products over long products was also significant (77.97% and 20.49%, respectively).

According to the State Customs Service, the main export markets for Ukrainian rolled steel products in January-February this year were the European Union (80.6%), the rest of Europe (7.3%) and Africa (3.9%).

Among metallurgical importers, the first place was occupied by other European countries (42.9%), the second by the EU-27 (39.9%), and the third by Asian countries (16.9%).

As reported, Ukraine’s rolled steel market grew 2.19 times in 2023 compared to 2022, to 3 million 505.6 thousand tons. The company imported 1 million 118.6 thousand tons, or 31.91% of the domestic rolled steel consumption market.

In 2023, Ukrainian steelmakers produced 5.37 million tons of rolled metal products (100.4% compared to 2022), of which, according to the UAVtormet Expert and Scientific Council, about 2.99 million tons, or 55.6%, were exported.

In 2022, the share of exports amounted to 81.7% (4.37 million tons with a total production of 5.35 million tons of rolled metal products).

The share of semi-finished products in export deliveries in 2023 was 40.30%, which is significantly lower than in the same period in 2022 (43.45%). The share of flat products in exports for the year was also significantly higher than a year earlier (40.41% and 36.34%, respectively). At the same time, the share of long products is comparable to the figure for the previous similar reporting period (19.53% in 2023 vs. 20.21% in 2022).

In 2023, the domestic market capacity amounted to 3,505.6 thousand tons of rolled steel, of which 1,118.6 thousand tons, or 31.91%, were imported. In 2022, the domestic market capacity amounted to 1598.6 thousand tons, of which 621.6 thousand tons, or 38.88%, were imported. Thus, in 2023, there was an increase in the domestic market capacity by 119.29% compared to 2022, while the share of the import component decreased by 6.98%.

The structure of imports last year was still characterized by a significant dominance of flat products over long products (76.08% and 23.87%, respectively); in 2022, the dominance of flat products over long products was also significant (68.69% and 30.41%, respectively).

According to UAVtormet, the main export markets for Ukrainian steel products in 2023 were the EU (82%) and the rest of Europe (7.5%).

Among metallurgical importers in 2023, the first place was occupied by other European countries (42.4%), the second by the EU-27 (37.3%), and the third by Asian countries (18.2%).

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Ukraine reduced imports of lead and tin in January-February, but increased purchases of zinc

According to customs statistics released by the State Customs Service of Ukraine on Wednesday, Ukraine reduced imports of lead and lead products by 30.9% to $141 thousand (in February – $7 thousand), imports of tin and tin products by 5.8% to $507 thousand (in February – $247 thousand), and increased imports of zinc and zinc products by 55.6% to $6,406 (in February – $2,312 million).

Exports of lead and lead products decreased by 41.8% to $1.758 million (in February – $885 thousand), nickel and nickel products amounted to $50 thousand (in February – $47 thousand), while in January-February 2023 it was $92 thousand.

Zinc exports for the two months of this year amounted to $19 thousand (in February – $11 thousand), while in January-February 2023 it was $24 thousand. Exports of tin and products amounted to $24 thousand (in February – $24 thousand, in January there were no exports) against $18 thousand in the same period a year earlier.

At the same time, Ukraine 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.

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.

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

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Ukrainian companies increased aluminum imports 4.2 times in January-February 2024

According to customs statistics released by the State Customs Service of Ukraine, Ukrainian companies increased aluminum imports by 4.2 times to $60.431 million in January-February this year ($26.930 million in February). At the same time, exports of aluminum and aluminum products in the first two months of 2024 decreased by 4.2 times compared to the same period a year earlier, to $15.618 million (in February – $7.619 million).

Last year, exports of aluminum and aluminum products increased by 0.7% compared to 2022, to $97.616 million.

In addition, in 2022, Ukraine reduced imports of aluminum and aluminum products by 33.4% to $340.398 million.

Exports of aluminum and aluminum products in 2022 decreased by 42.7% compared to 2021, to $96.972 million.

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Ukraine imported copper worth $29 mln and exported $10 mln in January-February

In January-February this year, Ukrainian companies increased imports of copper and copper products by 66.8% in value terms compared to the same period last year, to $29.125 million.

According to customs statistics released by the State Customs Service of Ukraine on Wednesday, exports of copper and copper products decreased by 23% to $10.896 million over the period under review.

In February, the country imported copper worth $12.292 million and exported it for $5.617 million.

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 2022, Ukrainian companies reduced imports of copper and copper products by 64.3% year-on-year to $65.370 million, while exports decreased by 56.3% to $90.245 million.

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Ukraine increased exports of goods by 4.6%, while imports decreased by 1%

Ukraine’s exports of goods in January-February 2024 increased by 4.6% y-o-y, from $6.5 billion to $6.8 billion, while imports decreased by 1%, from $10.1 billion to $10 billion, the State Customs Service reported on Friday.

According to its post on Telegram, in the first two months of 2024, trade turnover increased by 2% compared to two months of 2023, to $16.8 billion.

In January, the State Customs Service reported a 9.7% increase in exports from $3.1 billion to $3.4 billion and a 6.3% increase in imports from $4.8 billion to $5.1 billion. Taking into account these data, in February, exports remained at the level of February last year – $3.4 billion, while imports decreased by 7.5% to $4.9 billion.

The agency noted that taxable imports in January-February amounted to $8.8 billion, or 88% of total imports, and the tax burden per 1 kg was $0.47/kg, which is 5% more than in the same period in 2023.

According to the State Customs Service, the largest imports to Ukraine in the first two months of this year were from China – $2 billion, Poland – $1.1 billion, and Germany – $769 million.

Ukraine exported the most to Poland – $649 million, Spain – $624 million, and China – $504 million.

As stated in the report, 67% of the total volume of goods imported in January-February 2024 was machinery, equipment and transport – $3.5 billion (UAH 25.3 billion was paid to the budget during customs clearance, which is 31% of customs revenues), chemical products – $1.8 billion (UAH 12.8 billion was paid to the budget, or 16% of customs revenues) and fuel and energy products – $1.3 billion (UAH 20 billion was paid, or 24% of revenues).

The top three most exported goods from Ukraine were food products – $4.5 billion, metals and metal products – $726 million, and mineral products – $587 million.

According to the report, in the first two months of 2024, UAH 47.96 million was paid to the budget during customs clearance of exports of goods subject to export duties.

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