In January-May, the volume of marketable products of Kyiv Cardboard and Paper Mill (Kyiv Pulp and Paper Mill, Obukhiv, Kyiv region), the industry leader in Ukraine by this indicator, amounted to UAH 3 billion 173 million, which is 3.6% more than in the same period last year, according to statistics from Ukrpapir Association.
As reported, the mill moved to positive production dynamics in the first quarter (up 0.2%), while in January-February there was a 2.4% decline in this indicator compared to the same period last year.
According to UkrPapir’s statistics provided to Interfax-Ukraine, in physical terms, the mill’s corrugated box production increased by 4.5% to 92.3 million square meters over the five months, which remains the best in the industry.
Cardboard production decreased by 7.5% to 64.4 thousand tons, including production of containerboard by 8.4% to 52.7 thousand tons and boxboard by 3.4% to 11.7 thousand tons.
The output of base paper for sanitary and hygiene products increased by 8.3% to 19 thousand tons, and the production of toilet paper increased by the same percentage to 107.55 million units.
The plant is a stable leader in toilet paper production in Ukraine: over five months, the industry’s major enterprises produced a total of 262.37 million rolls, up 10%.
According to UkrPapir, in May, Kyiv Pulp and Paper Mill reduced its paper and cardboard output by almost 10% to 15.8 thousand tons by May 2023, while corrugated boxes increased by 5% to 19.2 million square meters.
According to the Association’s data from the main industry enterprises, in January-May, paper and cardboard production in Ukraine increased by 6.1% compared to the same period in 2023, to 240.4 thousand tons, and cardboard boxes by 21.4%, to 237.7 million square meters.
Kyiv Pulp and Paper Mill is the parent company of the eponymous group of companies, one of the largest cardboard and paper products producers in Europe with a staff of over 2,500 people.
It has, among other things, a 240,000-tonne-per-year cardboard production facility and a 355 million-square-meter corrugated packaging plant, as well as a production facility for the production of base paper and finished products with an annual capacity of 70,000 tons of base paper.
As reported, in 2023, the plant produced products worth UAH 7 billion 568 million, up 1.8% year-on-year.
Global grain production in the 2024-2025 marketing year (MY, July-June) will increase by 1% compared to the previous season and amount to 2312 million tons due to higher yields of wheat, barley and sorghum, which will compensate for the decline in corn production, the International Grains Council (IGC) said in a report on Thursday.
At the same time, grain consumption will increase, and end-of-season stocks are expected to fall to a ten-year low, including in major exporters.
According to the forecasts, the volume of contracted grain trade in 2024/25 MY will increase by 4% and reach 416 mln tonnes. At the same time, the demand for global consumption will amount to 2320 mln tonnes, and carry-over stocks will be 580 mln tonnes.
In 2024/25, the global soybean production is expected to reach the maximum of 414 mln tonnes. The main demand for soybean products in the upcoming season will come from the world’s leading buyers – the USA, Brazil and Argentina. At the same time, carry-over stocks continue to accumulate. The trade in soybeans in October-September will intensify and increase by 2%, reaching a new high, according to IGC.
Speaking about other oilseeds, IGC drew attention to the expected significant global production of rapeseed/canola against the background of almost unchanged sunflower production, which will be similar to last year’s volume.
According to IGC forecasts, global rice production in 2024/25 MY will reach a record peak and grow by 2%, driven by increased production in major exporting countries, particularly in South Asia. Rice consumption will increase due to population growth, while stocks may increase due to accumulation in India. Trade is likely to decline in January-December 2025 amid rising supplies to Africa and lower demand from Asian importers, particularly Indonesia.
The IGC forecasts a 5% decline in demand for lentils and beans in January-December 2024 to 21.2 mln tons.
The International Grains Council also drew attention to the temporary abolition of tariffs on imports of raw rice, brown and white rice to Brazil until the end of 2024, which aims to mitigate the effects of recent rains and floods in southern Brazil. In addition, IMG members noted recent changes in India’s pulses import policy.
Business disruption is a serious threat to food and beverage companies, according to the Global Food and Beverage Risk Outlook 2024 by global consulting and brokerage firm WTW.
According to its website, nearly half (48%) of food and beverage companies cited business interruption as the biggest internal risk to their success.
This was followed by supply chain risk, cited by 40% of companies. Managing turbulence and potential disruption has become standard practice in the food and beverage sector, aided by global instability, conflict, climate change and the cost of living crisis. As a result, companies are cautious about their future.
More than 41% of food and beverage companies cited improving liquidity as the top strategic goal for the next two years, ensuring they have the financial resources to weather further shocks. Other key priorities include cost reduction, which 38% of companies focus on, and business stabilization (a goal for 35% of companies).
In addition, companies are increasingly questioning their ability to keep up with rapidly changing consumer tastes and preferences: 36% see this as a risk. However, this challenge also represents an area of opportunity, as companies can capitalize on the latest consumer trends.
Despite the challenges, food and beverage companies are actively working to improve resilience. Nearly half (47%) review their business continuity plans every six months and 31% do so quarterly.
However, more than a quarter 29% of these businesses reported that their insurance policies only cover property damage in the event of extreme weather, not including business interruption coverage, which is necessary for recovery and resilience.
“In January-March this year, Metinvest reduced steel production by 4% year-on-year and by 5% quarter-on-quarter to 469 thousand tons, according to a press release from the parent company Metinvest B.V.
According to the release, pig iron production decreased by 10% compared to Q1-2023 and by 5% compared to Q4-2023, to 448 thousand tons, and coke production by 11% and 3%, respectively, to 283 thousand tons. In particular, in 1Q2024, Kametstal produced 403 thousand tons of pig iron and 469 thousand tons of crude steel, which is lower than in 2023 and is mainly due to the shutdown of blast furnace No. 9 for scheduled overhaul in March 2024.
In 1Q2024, the output of semi-finished products amounted to 166 thousand tons, down 5% compared to 1Q2023 and 41% quarter-on-quarter, mainly due to the shutdown of BF-9 at Kametstal for repairs, as well as an increase in domestic consumption at downstream stages.
In the first quarter of 2024, finished product output increased by 4% quarter-on-quarter and by 8% year-on-year to 584 thousand tons. At the same time, flat products output increased by 12% compared to Q1-2014, but decreased by 1% compared to Q4-2013, to 282 thousand tonnes, due to an increase in the order book at rolling mills in Italy and the UK, while long products output decreased by 3% compared to Q1-2013, and increased by 17% compared to Q4-2014, to 302 thousand tonnes.
In particular, hot-rolled plate output increased by 8% year-on-year to 253 kt due to a shift in the order book in favor of these products at Ferriera Valider in Italy; galvanized cold-rolled coil output doubled year-on-year to 29 kt. tonnes due to the resumption of galvanized cold-rolled steel production in Italy; production of galvanized cold-rolled coils doubled year-on-year to 29 thousand tonnes. kt due to the resumption of production at Unisteel in Ukraine amid more stable electricity supplies in the first quarter of 2024 than in the first quarter of 2023; long products output increased by 17% as billet production at Kametstal stabilized and supplies to Promet Steel in Bulgaria returned to normal.
It should be noted that on February 24, 2022, Russia launched a full-scale military invasion of Ukraine. The Group’s plants in Ukraine, except for Mariupol and Avdiivka, continue to operate at different levels of capacity utilization, taking into account safety, personnel, electricity, logistics and economic factors.
In the first quarter of 2024, coke production decreased by 11% year-on-year and by 3% quarter-on-quarter to 283 thousand tons after some cells of coke oven battery No. 1 at KAMETSTAL were shut down.
It is also reported that Metinvest increased its total production of iron ore concentrate by 2.1 times year-on-year to 4.859 million tons in January-March 2024, pellets by 31% to 1.585 million tons, and total coking coal concentrate production decreased by 26% to 1.086 million tons.
“As a result, in the first quarter of 2024, iron ore production increased by 36% quarter-on-quarter to 4.859 million tons; production of commercial iron ore products increased by 41% quarter-on-quarter to 4.403 million tons; production of saleable iron ore concentrate increased by 53% quarter-on-quarter to 2.818 million tons; production of saleable pellets increased by 23% quarter-on-quarter to 1.585 million tons, partly due to increased orders for pellets,” the press release states.
The unblocking of Ukrainian ports on the Black Sea and an increase in the order book for pellets had the following effects in 1Q2024 compared to 1Q2023: gross iron ore concentrate output increased by 2.2 times, commercial iron ore products by 2.3 times, commercial iron ore concentrate by 4 times, and commercial pellets by 31%, the report says.
The press release explains that the Group’s decrease in coal concentrate output by 4% quarter-on-quarter and 26% year-on-year was due to a 6% drop in production at Metinvest Pokrovskugol in Q4 2021 and a 9% drop in production in Q1 2021, to 640 thousand tons, and a deterioration in the quality of coking coal and a decline in production. At the same time, the production of coal concentrate at United Coal (USA) remained almost at the same level as in the previous quarter – 446 thousand tons, but decreased by 41% due to the downtime of the Carter Roag mine and a decrease in production at some Wellmore mines.
As reported, in 2023, Metinvest increased its total production of iron ore concentrate by 4% compared to 2022 to 11.092 million tons, pellets by 66% to 5.283 million tons, and total coking coal concentrate production increased by 10% to 5.455 million tons.
In 2023, the Group decreased steel production by 31% compared to 2022 to 2.025 million tons, pig iron by 36% to 1.765 million tons, and coke by 25% to 1.241 million tons.
“Metinvest comprises mining and metallurgical enterprises located in Ukraine, Europe and the United States. Metinvest’s major shareholders are SCM Group (71.24%) and Smart Holding (23.76%), which jointly manage the company. Metinvest Holding LLC is the management company of Metinvest Group.
“Metinvest Group comprises mining and metallurgical enterprises located in Ukraine, Europe and the USA.
The major shareholders of Metinvest are SCM Group (71.24%) and Smart Holding (23.76%), which jointly manage the company.
Metinvest Holding LLC is the management company of Metinvest Group.
Blumi LLC (Odesa), a manufacturer of sanitary and hygienic paper products under the Snow Panda brand, produced products worth UAH 149.6 million in January-April, up 38.5% compared to the same period in 2023. According to statistics provided by Ukrpapir Association to Interfax-Ukraine, in physical terms, in particular, the production of toilet paper increased by 31.5% to 18.3 million rolls.
As reported, in just four months, the major manufacturers of sanitary paper products produced 210.6 million rolls of paper, up 10% year-on-year.
Bloomi, which was registered in 2014, produces pulp-based sanitary products (toilet paper, napkins, towels) from imported raw paper. The products are manufactured at the facilities of Omega Brokers PE, one of the leading Ukrainian manufacturers of detergents, disinfectants and sanitary products.
In 2023, the company almost doubled its production volume by 2022 to UAH 367.3 million.
The company is co-owned equally (25% each) by four Odesa-based entrepreneurs.
In January-March this year, Ukrtruboprom enterprises increased pipe production by 12.6% year-on-year to 142.5 thousand tons.
According to the company’s data on Tuesday, in January 2024, it produced 52.5 thousand tons of pipe products (174.4% compared to January 2023), in February – 41.4 thousand tons (105.1% compared to February 2023), in March – 48.6 thousand tons (85.1% compared to March 2023).
In the first quarter, almost all pipe companies showed positive dynamics. In particular, Interpipe Nico Tube and Trubostal increased production of seamless pipes by 11.5% and 75%, respectively, Centravis increased production of stainless pipes by 13.8%, and Interpipe NMTZ and Ukrtruboizol increased production of electric-welded pipes by 69.2% and 714.3%, respectively. Only Oscar’s pipe production decreased by 43.2%.
Ukrtruboprom CEO Georgy Polsky stated that the positive results of the first quarter of 2024 were primarily due to the low comparison base of the previous year, when the industry operated under strict electricity consumption limits. This led to an increase in production “on paper”.
“In reality, the rate of pipe production is slowing down, and in March, a 15% decline was recorded. The main reason is a significant increase in imports of steel pipes from China to Ukraine at dumping prices, which are supported by Chinese government subsidies,” Mr. Polsky emphasized.
He also added that the US and the EU have recently been actively working to develop and implement protectionist measures that will limit the flow of Chinese goods into their markets. The Ukrainian steel pipe market also needs protection from dumped imports from China, the Ukrtruboprom CEO summarized.
As reported, Ukrtruboprom’s enterprises increased production by 10.2% to 495.6 thousand tons in 2023, but could have done more if the volume of Chinese products in the domestic market had declined.
In particular, Interpipe Niko Tube increased its production of seamless pipes by 13.3%, while Trubostal reduced its output by 42.5%. Ukrtruboizol increased production of electric-welded pipes by 43.8%, while Interpipe NMTZ decreased production by 53.8%. “Centravis increased production of stainless pipes by 11.7%. Oscar’s pipe production decreased by 30.5%.
At the same time, it was specified that in January 2023, the company produced 30.1 thousand tons of pipe products (44.9% compared to January 2022), in February – 39.4 thousand tons (80.4% compared to February 2022), in March – 57.1 thousand tons (1631.4% compared to March 2022), in March – 57.1 thousand tons (1631.4% compared to March 2022). tons (1631.4% compared to March 2022), in April – 42.3 thousand tons (228.6% compared to April 2022), in May – 49.6 thousand tons (96.5% compared to May 2022), in June – 35 thousand tons (67.8% compared to June 2022). In July 2023, the company produced 43.9 thousand tons of pipes (112% compared to July 2022), in August – 41.8 thousand tons (114.5%), in September – 36.9 thousand tons (89.9%), in October – 39.7 thousand tons (98%), in November – 37.2 thousand tons (110.1%) and in December – 42.4 thousand tons (239.5%).
