Business news from Ukraine

UKRAINE RAISE UP STEEL PRODUCTION BY 0.7% IN JAN

Based on the results of the work of metallurgical enterprises in January of this year, Ukraine increased steel production by 0.7% compared to the same period in 2021, being 13th in the ranking of 64 countries – the world’s main producers of this product, compiled by the World Manufacturers Association steel (Worldsteel).
According to Worldsteel data released on Tuesday, in January 2022, a decrease in steel production was recorded by January 2021 in most countries of the top ten, except for India, the United States, Russia and Iran.
The top ten steel-producing countries in January was as follows: China (81.685 million tonnes, a decrease of 11.2% compared to January 2021), India (10.781 million tonnes, an increase of 4.7%), Japan (7.758 million tonnes, 2.1% less), the United States (7.266 million tonnes, 4.2% more), Russian Federation (6.570 million tonnes, 3.3% more), South Korea (5.980 million tonnes, 1.1% less), Germany (3.259 million tonnes, 1.4% less), Turkey (3.161 million tonnes, 7.8% less), Brazil (2.883 million tonnes, 4.8% less) and Iran (2.8 million tonnes, 20.3% more).
This is followed by Taiwan (China, 2.040 million tonnes, an increase of 2.2%), Vietnam (1.875 million tonnes, a decrease of 4.1%), Ukraine (1.851 million tonnes, 0.7% more), Mexico (1.520 million tonnes, 2.5% less) and Italy (1.5 million tonnes, 20.8% less).
In general, in January of this year, steel production decreased by 6.1% compared to the same period last year, to 155.030 million tonnes.

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MEAT PRODUCTION IN UKRAINE DECREASE BY 1.5%

Sales of meat for slaughter in Ukraine (in live weight) in January of this year decreased by 1.5% compared to January 2021, to 307,300 tonnes, milk production – by 1.5%, to 522,100 tonnes, and eggs – by 8.1%, to 934.6 million pieces.
According to the website of the State Statistics Service, as of February 1, 2022, the total number of poultry in Ukraine increased by 0.7% compared to the same date last year, to 193.9 million birds. The number of pigs decreased by 3.4%, to 5.56 million animals, cattle – by 6.5%, to 2.7 million animals (including the number of cows – by 6.6%, to 1 .55 million animals), and sheep and goats – by 3.3%, to 1.09 million animals.
As of the indicated date, the number of cattle and pigs in the households of the population decreased the most – to 1.7 million animals of cattle (9.7% less versus February 1, 2021) and 1.92 million pigs (7.5% less). At the same time, by February 1, 2022, the country recorded an increase in the number of poultry at agricultural enterprises by 2.9%, to 110.9 million birds, and sheep and goats – by 8%, to 165,000 animals.
The population of cows at agricultural enterprises also increased by 0.2%, to 423,700 animals, while the total number of cattle decreased by 0.5%, to 1 million animals.
Sales of poultry for slaughter by agricultural enterprises in January 2022 increased by 3.8% compared to January a year earlier, to 56.96 million birds, sheep and goats – by 60.2%, to 3,700 animals, while sales of pigs decreased by 10.5%, to 0.35 million animals, and cattle – by 0.4%, to 23,100 animals.
Sales of eggs by agricultural enterprises for the specified period decreased by 12.3%, to 570,000 pieces, while the households reduced their sales by 1.4%, to 360,900 pieces.
The State Statistics Service specified that in January of this year, Kyiv region became the leader in production of eggs – 241.1 million eggs (9.3% less compared to January 2021), Khmelnytsky region – 68.6 million pieces (5.2% more), Dnipropetrovsk region – 56.1 million pieces (9.7% less) and Cherkasy region – 52.1 million pieces (13.7% less).
According to the statistics service, in January of this year, Ukrainian agricultural enterprises increased milk production by 6.9% compared to January last year, to 243,300 tonnes, while its production by households decreased by 7.8%, to 278,800 tonnes.
Most milk was produced in Poltava region – 50,900 tonnes (0.2% less), Vinnytsia region – 45,100 tonnes (7.8% less), Khmelnytsky – 40,000 tonnes (2.8% more), as well as Kharkiv and Cherkasy regions – by 34,000 tonnes (more by 2.1% and 2.7% respectively).

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KYIVSKY CARDBOARD MILL RAISES UP PRODUCTION BY 42%

The volume of commercial output of Kyivsky cardboard paper mill (Obukhiv, Kyiv region), the leader in the pulp and paper industry in sales, grew by 42.4% in January compared to the same month in 2021, to UAH 668 .31 million.
According to the statistics of the UkrPapir association, provided to Interfax-Ukraine, at the same time, in kind, only the production of base paper for sanitary and hygienic products showed a slight increase (by 1%), to 7,570 tonnes.
The mill reduced the production of corrugated packaging by 7.5%, to 15.65 million square meters, cardboard – by 6.4%, to 17,830 tonnes (including container increased by 2.8% to 12,130 tonnes, boxboard reduced by 21.3% – to 5,700 tonnes.
Production of toilet paper in rolls fell by 8.2% to 33.19 million pieces.
According to the association, in general, enterprises of the industry in January 2021 increased the production of corrugated packaging by 3.5%, to 48 million square meters, paper and cardboard were reduced by 4.6%, to 64,000 tonnes, toilet paper production in rolls was reduced by 8.5%, to 54.65 million pieces.
Kyivsky cardboard paper mill is one of the largest enterprises in Europe for the production of cardboard and paper products with a staff of about 2,200 people. Products are sold to almost 700 companies in Ukraine, a number of CIS countries and far abroad.
As reported, the mill intends to invest up to EUR 20 million in the development of a new industrial site in Verkhniodniprovsk (Dnipropetrovsk region) for the production of corrugated products.

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MALT PRODUCTION IN UKRAINE IN JAN GROWS BY 11%

Malt production in Ukraine in January grew by 10.8%, to 18,600 tonnes.
Malt production in 2021 amounted to 218,500 tonnes, which is 19.5% less than in 2020.
At the same time, the year before last, its production decreased by 18% compared to 2019, to 275,000 tonnes.

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SKHIDNY MINING URANIUM CONCENTRATE PRODUCTION GOES DOWN BY 38.9% IN 2021

The state-owned enterprise Skhidny Mining and Processing Plant in 2021 reduced the production of uranium oxide concentrate (UOC) by 38.9% (by 289.07 tonnes) compared to 2020, to 454.63 tonnes.
According to the company’s data on the unified public portal of open data, 32.17 tonnes of UOC were produced in January, 31.37 tonnes in February, 49.8 tonnes in March, 37.8 tonnes in April, and 41.57 tonnes in May, 35.1 tonnes in in June, 52.3 tonnes in July, nothing in August, 60.14 tonnes in September, 33.28 tonnes in October, 18.1 tonnes in November, 63 tonnes in December.
In addition, in January 2022, the production of uranium concentrate by the enterprise amounted to 24.6 tonnes.
Skhidny Mining is the only enterprise in Ukraine and the largest enterprise in Europe for the extraction and processing of uranium ore. The annual demand of Ukrainian NPPs for uranium concentrate is about 22,400 tonnes.

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CHERKASY AZOT PROVIDES PRODUCTION OF ADBLUE ADDITIVE

Cherkasy Azot, part of Dmytro Firtash’s Group DF nitrogen business and primarily engaged in production of chemical fertilizers, has launched a project to launch the production of AdBlue, a special additive for diesel engines used to reduce NO (nitrogen oxide) emissions.
“We are entering a growing, marginal, but very competitive market. Completion of all preparatory work for the launch of the project is expected in the first half of 2022,” the company’s CEO, Vitaliy Skliarov, said in a release.
According to the report, the expected production volume of the reagent is 10,000 tonnes per year.
At the moment, Azot has carried out preparatory work for the installation of equipment. The production of the reagent will be organized on the basis of workshop K-4, where crystalline caprolactam was previously produced.
The volume of investments will be announced after the launch of the project and will include all the necessary certification procedures.
Skliarov added that negotiations are underway with the German Association of the Automotive Industry (VDA), which developed this technology, to conduct an audit and issue a license to use the AdBlue brand. According to him, the sale of these products is planned both in the domestic and foreign markets, it is possible to increase the capacity.
According to Group DF estimates, the volume of the market for AdBlue and its analogues in Ukraine is about 35,000-45,000 tonnes per year, while today more than 60% of the Ukrainian market is occupied by imports, and Cherkasy Azot will be able to gradually replace imported products.
“AdBlue is, in fact, an aqueous solution of urea, respectively, its largest producers worldwide are nitrogen plants. It is logical that in Ukraine we will have a price advantage over competitors … We will also have a price advantage in the European market,” Skliarov said.

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