Business news from Ukraine

UKRAINIAN BEER PRODUCTION GOES DOWN BY 5% IN 2021

Production of beer (except for non-alcoholic beer with an alcohol content of up to 0.5% vol.) in Ukraine in 2021 fell by 5.0% compared to the same period in 2020, to 170.5 million decalitres, the Ukrpyvo branch organization of brewers said on its website on Tuesday evening.
In addition, the production of malt in the country last year declined by 19.5%, to 218,500 tonnes.
As reported, beer production in 2020 in Ukraine decreased 0.4% compared to 2019, to 179.7 million decaliters, and malt production fell by 18%, to 275,000 tonnes.

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UKRAINE RAISES UP COAL PRODUCTION BY 2% IN 2021

Coal mining enterprises of Ukraine in 2021 increased production of coal by 2% (by 569,500 tonnes) compared to 2020 – to 29.388 million tonnes, according to the data of the Ministry of Energy.
In particular, production of steam coal amounted to 22.153 million tonnes, coking coal – 7.234 million tonnes.
According to the calculations of the Interfax-Ukraine agency, coal mining enterprises, which are part of the ministry’s sphere of management, last year increased production by 1.9 times – up to 5.446 million tonnes, which is largely due to the return from the lease by DTEK of the assets of state enterprise Dobropilliavuhillia.
The mines of Donetsk region in 2021 ensured the production of 11.892 million tonnes of coal (up 5.7% from 2020), Luhansk region – 257,600 tonnes (up 14.2%), Dnipropetrovsk – 16.032 million tonnes (up 0.2%), Lviv – 1.182 million tonnes (down 9.7%), Volyn – 24,400 tonnes (down 28.5%).
In December 2021, production of coal in the country increased by 5.8% compared to the same month in 2020 – to 2.772 million tonnes.

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UKRAINE INCREASES PRODUCTION OF PIPES

Ukraine’s leading pipe enterprises in January-November of this year increased production of pipes from ferrous metals, according to recent data, by 15.7% year-over-year, to 906,200 tonnes, including 87,100 tonnes produced in November. A source in the industry told Interfax-Ukraine, in particular, the enterprises of the Ukrtruboprom association have increased pipe production by 31.4% over this period, to 649,000 tonnes. Including in November, output amounted to 69,700 tonnes.
In a statement released on Wednesday, Ukrtruboprom welcomed a decision of the Ukrainian authorities to raise the export duty on scrap metal from EUR 58 to EUR 180 per tonne.
“Ukrainian pipe manufacturers expected this measure to restrict the export of strategic raw materials six months ago. It was from the end of spring that the export of ferrous scrap became uncontrolled, which caused a shortage of raw materials and even the import of round billets,” Ukrtruboprom Director General Heorhiy Polsky said, who signed the statement.
At the same time, he noted the timeliness of the duty hike: “It is important that the decision necessary for the Ukrainian pipe industry was made at the beginning of the winter season, when the volume of scrap procurement, the main raw material for production of seamless pipe products, is traditionally reduced.”
According to him, the new export duty will help stabilize the situation with scrap in the domestic market: pipe industry enterprises will be provided with raw materials, and people – with jobs and wages. After all, the export of highly processed products brings to the Ukrainian budget 4 times more taxes than the export of unprocessed raw materials abroad, Polsky summed up.

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PRODUCTION OF PELLETS GOES DOWN BY 0.5% IN JAN-OCT

Central Mining and Processing Plant (Kryvy Rih, Dnipropetrovsk region), part of Metinvest Group, in January-October this year, reduced production of commercial pellets, according to recent data, by 0.5% y-o-y, to 1.850 million tonnes.
As the enterprise told Interfax-Ukraine, in October production of pellets amounted to 110,210 tonnes.
Over ten months, Central Mining reduced production of iron ore concentrate by 2.9%, to 3.959 million tonnes, including 433,163 tonnes produced in October.
At the same time, the agency source noted that in recent months, the lag in production this year has been decreasing in comparison with the previous year. So, in particular, the relative level of backlog of production of commercial pellets in nine months of this year was 2.5% y-o-y, and concentrate – 3%.
As Yuriy Ryzhenkov, CEO of Metinvest, recently announced, in 2020 the company received the first high-quality pellets at Central Mining – DRI-class pellets. The next step is Pivnichny (Northern) Mining and Processing Plant.

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UKRAINIAN STEEL CONSTRUCTION CENTER: PRODUCTION OF METAL STRUCTURES TO GROW TO 5% IN 2021

The production of metal structures in Ukraine by the end of 2021 may grow by 4-5%, this forecast was announced by Executive Director of the Ukrainian Steel Construction Center (USCC) Viacheslav Kolesnik in an exclusive interview with Interfax-Ukraine.
“The first half of 2021 was good: the production of metal structures amounted to about 76,000 tonnes. The third quarter was slightly worse in terms of dynamics: at that moment the price began to fall, many believed that buying metal on a downtrend was not always justified. The situation has stabilized. We still expect that in 2021 we will get results somewhat better than last year – growth of 4-5%,” he said.
According to Kolesnik, the metal structures market is currently in a downtrend in metal prices. “The rise in energy prices halted the downward trend – since October, prices have frozen. We hope that the trend of growth in energy prices will not last long, by the end of winter the situation will stabilize and the downward trend in metal prices will continue,” he said.
According to the expert, fluctuations in metal prices do not have a significant impact on exports, but on the local market they are significant from the point of view of the competitiveness of metal structures in comparison with other structural materials.
Kolesnik noted one more factor that may affect the final results of the year. “Significant volumes of metal are used for road construction, in particular for road fencing. Payments are practically suspended there in October-November. If payments to road fence manufacturers are not resumed, this segment will sag by 25-30% year-over-year,” he said.

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INTERPIPE STEEL INCREASES STEEL PRODUCTION BY QUARTER

Electric steelmaking complex Interpipe Steel of the international vertically integrated pipe and wheel company Interpipe (Dnipro) in January-October this year increased steel production, according to recent data, by 23.9% compared to the same period last year, to 793,000 tonnes.
As the company told Interfax-Ukraine, 63,000 tonnes of steel were produced in October, while in September – 97,000 tonnes.
According to the information of the enterprise, the reason for a decrease in production volumes was the annual overhaul, which ended on November 1 after 12 days of repair work.
“In addition to traditional replacements of parts and assemblies, which are carried out regularly or periodically in each overhaul, during this time, five sections of a water-cooled gas duct, a bearing on an arc steel-making furnace, and technological axes were set on both continuous casting machines. We have completed all the planned work in full,” the company said in a statement.
Interpipe is a Ukrainian industrial company, a manufacturer of seamless pipes and railway wheels. The company’s products are supplied to more than 80 countries of the world through a network of sales offices located in the key markets of the CIS, the Middle East, North America and Europe. In 2020, Interpipe sold 662,000 tonnes of finished products, including 192,000 tonnes of railway products. Sales of railway products are carried out under the KLW brand.

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