Business news from Ukraine

Business news from Ukraine

Ukraine increased exports of scrap metal by 46%

Ukrainian companies in January this year increased the export of scrap ferrous metals by 45.5% compared to the same period last year – up to 8,280 thousand tons.
According to statistics released by the State Customs Service (SCS), in terms of money exports of scrap metal decreased by 8.5% – to $ 2.362 million.
At the same time, the country did not import scrap metal in the first month of the year.
Exports of scrap metal in January-2023 was carried out in Poland (95.68%), Slovakia (2.58%) and Germany (1.10%).
As reported, Ukraine in 2022, scrap exports of ferrous metals decreased by 11.5 times compared to the previous year – up to 53.557 tons, in monetary terms down to 12.4 times – to $ 19.271 million. At the same time, last year, the country reduced the import of scrap metal in kind by 12.6 times – to 1.824 thousand tons. Imports of scrap metal in 2022 was carried out mainly from Turkey (78.92% of supplies in monetary terms), Russia (13.25%) and Cyprus (5.08%), while exports – to Turkey (38.97%), Poland (34.25%) and Greece (10.12%).

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Worldwide consumption of scrap metal decreased by 8.4%

Consumption of scrap metal in the world fell in the first half of this year by 8.4% compared to the same period last year – to 248.789 million tons, following the downward trend in steel production, the Bureau of International Recycling (BIR) reported.
At the same time, it is specified that the largest consumer of steel scrap – China – over this period reduced scrap consumption by 13.8% – to 119.55 million tons, the share of scrap in the production of crude steel decreased to 22.7%.
In the second largest user, the EU, scrap use fell 3.2% to an estimated 43.856 million tonnes, while first-half US scrap use fell 3% year-on-year to 22.5 million tonnes.
The consumption of scrap metal in Turkey in the first half of the year decreased by 3% – to 12.480 million tons, the share of steel scrap in the production of crude steel was 87.1%.
BIR notes that Turkey remains the world’s largest importer of scrap steel, importing 2.23 million tons from the US, 1.16 million tons from the Netherlands and 1.135 million tons from the UK.
The second largest importer – South Korea – imported 2.72 million tons of scrap in the first half of the year, which is 29.1% more than in the previous period, while supplies from Japan amounted to 1.7 million tons, the United States – 399 thousand tons and Russia – 226 thousand tons.
India imported 2.67 million tons of scrap metal in the first half of the year, up 0.3%, of which 711 thousand tons from the UAE, 208 thousand tons from the United States and 170 thousand tons from Singapore.
Scrap metal imports also increased to Thailand, Indonesia and Norway in the first half of the year, but fell to the US, EU and Taiwan, BIR reported.
The largest exporter of scrap in the first half of the year is the United States, deliveries amounted to 8.87 million tons. Its main buyers were Mexico (2.005 million tons), Turkey (2 million tons), Bangladesh (900 thousand tons) and South Korea (357 thousand tons).
EU scrap metal exports fell 23.9% to 8.5 million tons, with Turkey (5.8 million tons), Egypt (625 thousand tons) and Switzerland (318 thousand tons) being the main destinations.

State Customs Service issued 80 certificates for export of scrap metal to EU

In January-June of this year, the State Customs Service of Ukraine issued 80 certificates for the export of scrap metal to EU countries to enterprises dealing with ferrous scrap, according to the Ministry of Finance’s response to the letter of the Ukrainian Association of Secondary Metals (“UAVtormet”), dated July 23, 2022.
At the same time, the Ministry of Finance stated that the State Customs Service did not receive requests from subjects of foreign economic activity regarding problems in obtaining certificates.
In turn, “UAVtormet” sent a letter to the Ministry of Finance and the State Customs Service on June 20, 2022, a copy of which is in the possession of the “Interfax-Ukraine” agency, in which it pointed out the appeal of market participants regarding selectivity in the issuance of permits for export procedures, in particular, in the issuance of certificates for supply of scrap to the EU.
In the appeal of “UAVtormet” it was emphasized that the Ministry issued an order dated March 2, 2021 approving the procedure for issuing certificates. According to the Association, the procedure for obtaining a certificate is significantly complicated, it does not contain a complete list of necessary documents, and the procedure for a full or partial inspection of vehicles for product identification is used to delay the registration of export consignments.
UAVtormet believes that this creates corruption risks and causes financial losses to both the state and Ukrainian business.
The association asked the Ministry of Finance to hold an operational meeting on problematic issues in the export of scrap metal, with the involvement of experts from the ministry, the State Customs Service, the Chamber of Commerce and Industry, “UAVtormet” and “UAVtormetresurs”.
As reported, Ukrainian enterprises in January-June of this year reduced the export of ferrous metal scrap eightfold compared to the same period last year – to 28.74 thousand tons, in monetary terms, the export of scrap metal decreased by 6.8 times – to $12.24 million.
Scrap metal was exported in January-June 2022 mainly to Turkey (61.35%), Poland (12.49%) and Germany (9.45%).
In 2021, Ukraine increased the export of scrap metal by 17.2 times compared to the previous year – up to 615.69 thousand tons. In monetary terms, the export of scrap metal increased 25.2 times to $238.90 million.
Ukrainian Association of Secondary Metals (“UAVtormet”), Ukrainian Association of Scrap Metal Exporters (UAEM) and “Ukrainian Association of Secondary Metals and Resources” (“UAVtormetresurs”) operate in Ukraine.

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UKRAINE IN FIRST HALF OF YEAR REDUCED EXPORT OF SCRAP METAL BY 8 TIMES

Ukrainian enterprises in January-June of this year reduced the export of ferrous scrap by 8 times compared to the same period last year – to 28.74 thousand tons.
According to statistics released by the State Customs Service (SCS), in monetary terms, the export of scrap metal over this period decreased by 6.8 times – to $12.24 million.
At the same time, 6 months the country reduced the import of scrap metal in physical terms by 8.1 times – up to 1.55 thousand tons. In monetary terms, the import of scrap decreased 6.8 times to $3.28 million.
The import of scrap metal in January-June was carried out mainly from Turkey (78.89% of deliveries in monetary terms), the Russian Federation (14.09%) and Cyprus (5.4%); export – to Turkey (61.35%), Poland (12.49%) and Germany (9.45%).
In addition, in January-June 2022, Ukrainian steel enterprises did not import products of direct reduction of iron from ore under code 7203 – hot briquetted iron (HBI), which is a substitute for pig iron and scrap metal, but exported 258 tons of this product to India (100%) in the amount of $48 thousand
As reported, Ukraine in 2021 increased the export of scrap metal by 17.2 times compared to the previous year – up to 615.69 thousand tons. In monetary terms, the export of scrap metal increased 25.2 times – up to $238.90 million.
In 2021, the country reduced the import of scrap metal in physical terms by 13.1% to 22.96 thousand tons. In monetary terms, the import of scrap increased by 72.4% to $44.88 million.
The import of scrap metal in 2021 was carried out mainly from Turkey (60.42% of deliveries in monetary terms), the Russian Federation (33.44%) and Belarus (1.57%); export – to Turkey (84.85%), Romania (6.66%) and Poland (3.45%).
In addition, Ukrainian steel enterprises in 2021 imported from the Russian Federation 1.60 thousand tons of products of direct reduction of iron from ore under code 7203 – hot briquetted iron (HBI), which is a substitute for pig iron and scrap metal, in the amount of $653 thousand, while in 2020 – 2.65 thousand tons for $805 thousand. At the same time, the export of these products to India amounted to 288 tons for $91 thousand.

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UKRAINIAN EXPORT OF SCRAP METAL GOES DOWN IN MONETARY TERMS BY 56%

Ukrainian enterprises in January of this year reduced the export of ferrous metal scrap in monetary terms, according to operational data, by 56.48% compared to the same period last year, to $2.61 million.
According to preliminary generalized statistics released by the State Customs Service, in December 2021, scrap metal exports in monetary terms amounted to $26.98 million.
In January, the country reduced imports of scrap metal in monetary terms by 98.4%, to $53.28 thousand, in December scrap was imported for $3.96 million.
As reported, Ukraine in 2021 increased the export of ferrous metal scrap by 17.2 times compared to the previous year, to 615,687 tonnes, including 68,166 tonnes of scrap in December (35,824 tonnes were exported in 2020). In monetary terms, the export of scrap metal grew by 25.2 times, to $238.895 million.
In 2021, the country reduced the import of scrap metal in kind by 13.1%, to 22,964 tonnes. In monetary terms, the import of scrap rose by 72.4%, to $44.883 million.
Scrap metal in 2021 was mainly imported from Turkey (60.42% of deliveries in monetary terms), the Russian Federation (33.44%) and Belarus (1.57%); and exported to Turkey (84.85%), Romania (6.66%) and Poland (3.45%).

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UKRAINES EXPORT OF SCRAP METAL RAISES UP IN MONEY VALUES BY 25 TIMES IN JAN-NOV

Ukrainian enterprises in January-November of this year increased the export of ferrous scrap, according to operational data, by 24.8 times compared to the same period last year, to $211.92 million from $8.55 million.
According to preliminary summarized statistics released by the State Customs Service on Thursday, in money values, the export of scrap metal in November 2021 amounted to $16.17 million, while in November 2020 it was $352,340.
At the same time, in January-November of this year, the country increased the import of scrap metal in money values by 88%, to $40.91 million; in November, scrap was imported for $3.47 million.

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