Business news from Ukraine

UKRAINE SHOULD EXPORT HIGHLY PROCESSED PRODUCTS, CREATE COMFORTABLE BUSINESS CLIMATE FOR INVESTORS – MP KOLESNYKOV

Verkhovna Rada of Ukraine deputy and Opposition Party Co-chairman Borys Kolesnykov has said Ukraine should export more highly processed products, remove the energy and food blockade of Donbas and create a comfortable business climate for investors. “Ukraine simply needs to export more and import less, and within three years we must export highly processed products. We must act solely in our own economic interests,” he said on his Facebook page on Thursday. Kolesnykov said government should “promptly remove the energy and food blockade of Donbas and create a real investment climate in the country for both domestic investors and foreign investors.” “Ukraine simply has to become an Eastern European Singapore,” he said.

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UKRAINE BOOSTS PIPE EXPORT, MAJOR MARKETS – UNITED STATES, ITALY, TURKEY

Ukraine in January-August 2018 increased steel pipe exports by 7.3% compared to the same period in 2017, to 434,600 tonnes, of which 70.2% accounted for seamless, 29.8% for welded pipes, according to a Monday press release of the state-owned Enterprise Derzhzovnishinform. At the same time, foreign exchange earnings from pipe exports increased by 39.6% to $484.6 million (82.2% – seamless and 17.8% – welded pipes).
According to the results of the eight months ending August 2018, the export of semi-finished products was 4.512 million tonnes, which is 16.5% more compared to the same period last year. In monetary terms, the growth in exports of semi-finished products amounted to 47.3%, to $2.167 billion.
The volume of export of finished rolled products decreased by 2.8% to 5.498 million tonnes, however, due to the general increase in prices in the global market in the segment of finished rolled products, revenues from its exports increased by 18.6%, to $3.248 billion.
The volume of exports of raw materials for metallurgy (goods from group 72) increased by 31%, to 3.04 million tonnes in January-August 2018, while foreign exchange earnings increased by 25.2%, to $ 1.534 billion.
A significant upward dynamics is demonstrated by the export of pig iron, which increased by 45.8%, to 2.113 million tonnes. The main sales markets for Ukrainian iron are the United States, Italy and Turkey.
Exports of ferroalloys in January-August increased by 2.5% to 622,700 tonnes, scrap metal exports increased by 17% to 300,300 tonnes. Proceeds from the export of ferroalloys for the period fell 2.9%, to $696.9 million, but increased from scrap exports by 69.8%, to $98.2 million.
Import of rolled metal to Ukraine in the first eight months of this year in kind increased 11.7%, to 883,500 tonnes, and in monetary terms – by 22.2%, to $711.7 million.
Imports of flat steel increased 0.6% to 192,500 0 tonnes, but imports of flat rolled products with coating decreased by 7.8%, to 311,100 tonnes. At the same time, the foreign exchange costs for the import of rolled products amounted to $711.7 million.

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UKRAINE RAISES CHEESE IMPORT BY 30% AND CUTS EXPORT BY 4%

Ukraine exported 5,390 tonnes of cheese in January-August 2018, which is 4.1% less than in the same period in 2017. According to customs statistics released by the State Fiscal Service, in monetary terms exports amounted to $20.04 million, and this is 2.6% more than a year ago.
At the same time, cheese imports in January-August 2018 amounted to 7,810 tonnes, which is 30% more than in the same period in 2017. In terms of money, this indicator increased by 41.2%, to $38.31 million.
Exports of butter from Ukraine in January-August this year rose by 19.2%, to 21,410 tonnes. In monetary terms, this figure grew by 32.2% and amounted to $92.43 million. According to the State Fiscal Service, imports of this product increased 2.4 times, to 710 tonnes ($4.84 million).
Exports of milk and cream (condensed) in January-August decreased 19.8%, to 26,640 tonnes. Ukraine supplied condensed milk and cream for a total of $43.77 million against $57.07 million in January-August 2017. Imports of this group of goods increased by 1.7 times, to 1,430 tonnes ($3.51 million).

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UKRAINE MAY BOOST SUGAR EXPORT IN 2018/2019 MARKETING YEAR

Ukraine in the 2018/2019 marketing year (MY, September through August) could reduce sugar output by 5.5% and boost its exports by 13%, according to the National Sugar Producers Association Ukrtsukor. “In the 2018/2019 season, Ukraine and Russia will see a decrease in sugar production – by 5.5% and 11%, respectively, but Belarus is expected to see growth by 13%. At the same time, sugar exports from Ukraine and Russia will increase by 13% and 7%, respectively, while Belarus will see a slight decrease – by 5%. In addition, tough competition for the sales markets will continue,” head of the analytical service of the Sucden Group of Companies (CIS) Marina Sidak was quoted as saying.
According to her, due to the negative demographic situation in Ukraine, there will be a decrease in domestic consumption. At the same time, there is a risk of a reduction in Ukrainian rail transportation of sugar due to a shortage of covered wagons.
As reported with reference to Ukrtsukor, Ukraine in the current MY will reduce sugar exports by at least 25% compared to the previous MY.
Production of sugar in the 2017/2018 MY increased by 6.5%, to 2.14 million tonnes.

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UKRAINE RAISES CAST IRON EXPORTS BY 59.3%, MORE THAN HALF OF SHIPMENTS TO U.S. IN SEVEN MONTHS

Ukraine in January-July 2018 increased exports of pig iron in natural terms by 59.3% compared to the same period in 2017, to 1.768 million tonnes.
According to customs statistics released by the State Fiscal Service, during this period exports of cast iron in monetary terms rose by 78.6%, to $608.696 million.
At the same time, exports were mainly made to the United States (57.41% of deliveries in monetary terms), Italy (14.21%), and Turkey (8.35%).
In January-July 2018 Ukraine imported 836 tonnes of similar products for $493,000, while in January-July 2017 some 1,352 tonnes worth $683,000. Imports were carried out from Russia (79.31% of deliveries in monetary terms), and Germany (20.69%).
As reported, Ukraine in 2017 reduced exports of cast iron in natural terms by 7.8% compared to the previous year, to 2.342 million tonnes, but increased in monetary terms by 33.9%, to $738.130 million. At the same time, exports were mainly made to the U.S. (55.05% of deliveries in monetary terms), Italy (24.69%), and Turkey (7.95%).

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MHP TO EXPAND SHARE OF EXPORT EARNINGS TO 70% IN THREE YEARS

Myronivsky Hliboproduct (MHP) plans to increase the share of export revenues in total sales to 70% in future from 55% in the first half of 2018.
“We intend to increase exports … After the launch of all capacities, exports could reach 70%. This is the prospect for the next three years,” Viktoria Kapeliushna, the company’s finance director, told Interfax-Ukraine, noting that MHP exports not only chicken, but also grain and vegetable oil.
In addition, she confirmed the interest of MHP in purchasing new assets in other countries and reported the agricultural holding is considering several proposals.
Commenting on the impact of the external situation on the company’s plans, she noted the risk of expanding trade wars between the countries.
“The situation with the Turkish lira has not affected Ukraine so far. But we cannot say there won’t be influence at all, it depends on what will happen to other emerging markets. At present, it’s worth being more afraid of trade wars between the countries. This factor can indeed significantly affect the markets,” Kapeliushna believes.
Speaking about expectations for the near future, the financial director of MHP reported that the agroholding maintains its forecast for the growth of EBITDA in 2018 compared to 2017 by 5%, to $490 million.

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