Business news from Ukraine

Ukraine increased exports of scrap metal almost 4 times in 10 months

In January-October of this year, Ukrainian enterprises increased exports of ferrous scrap by 3.89 times compared to the same period last year, up to 146.927 thousand tons.

According to the statistics released by the State Customs Service (SCS), in monetary terms, exports of scrap metal amounted to $42.088 million in the period under review (up 2.9 times).

At the same time, the export of scrap metal has been growing since March: in January, about 8.28 thousand tons of scrap were exported, in February – 16.5 thousand tons, in March – 15.45 thousand tons, in April – about 16 thousand tons. tons, in April – about 16.19 thousand tons, in May – 21.003 thousand tons, in June – 14.6 thousand tons, in July – 9.567 thousand tons, in August – 15.849 thousand tons, in September – 13.7 thousand tons, in October – 15.796 thousand tons.

Scrap metal was exported to Poland (87.39%), Greece (6.42%) and Bulgaria (2.59%).

In the first two months of the year, the country did not import scrap metal; in March-October, it imported 898 tons of scrap worth $333 thousand (51.95% from Slovakia, 22.82% from Poland, 8.41% from Estonia).

Earlier, Ukrmetallurgprom President Oleksandr Kalenkov stated in an article on the Interfax-Ukraine website that scrap metal is exported through the European Union, which has a preferential export duty of EUR3 per ton, and from there the raw materials are redirected to real customers. Exporting raw materials directly to customers would cost EUR180 in export duty, and the Ukrainian budget has already lost UAH 350 million.

According to him, the State Bureau of Investigation has already taken an interest in such export schemes.

The head of Ukrmetallurgprom called for a temporary ban on the export of ferrous scrap to provide steelmakers with strategically important raw materials in the ongoing war.

“If the scrap metal remains in the country, more than 500,000 people will be employed and the country will receive millions in foreign exchange earnings from steel exports. At the same time, the military will also benefit, as steelmakers do a lot to help the military by purchasing equipment and vehicles for them and even producing bulletproof vests. No one benefits from scrap exports. That is why the government should be proactive and temporarily ban exports until the situation stabilizes and ceases to threaten national economic security,” Kalenkov said.

He clarified that a ton of scrap metal processed into steel brings in 10 times more to the budget than the EU export duty, which is about $300 per ton.

As reported, in 2022, Ukraine reduced exports of ferrous scrap by 11.5 times compared to the previous year to 53,557 thousand tons, while in monetary terms it decreased by 12.4 times to $19.271 million. At the same time, last year the country reduced imports of scrap metal in physical terms by 12.6 times to 1,824 thousand tons. tons, compared to the previous year – to $19.271 million tons, in monetary terms by 12.9 times – to $3.488 million. Imports of scrap metal in 2022 were mainly from Turkey (78.92% of supplies in monetary terms), the Russian Federation (13.25%) and Cyprus (5.08%); exports – to Turkey (38.97%), Poland (34.25%) and Greece (10.12%).

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Ukraine reduced foreign exchange earnings from ferrous metals exports by 45.7%

In January-October of this year, Ukraine’s steelmaking companies reduced their earnings from ferrous metal exports by 45.7% year-on-year to $2 billion 255.514 million.

According to statistics released by the State Customs Service (SCS) on Wednesday, ferrous metals accounted for 7.56% of total export revenues during this period, while the share was 11.26% in the first ten months of 2022.

In October, revenues from exports of ferrous metals amounted to $175.871 million, while in the previous month – $258.675 million.

At the same time, Ukraine increased imports of similar products by 43.4% to $1 billion 103.047 million over 10 months of this year. In October, the country imported products worth $124.012 million.

In addition, in January-October, Ukraine reduced exports of metal products by 16.3% year-on-year to $756.184 million. In October, exports were worth $62.852 million.

At the same time, imports of steel products increased by 35.5% to $723.032 million over the same period. In October, Ukraine received $117.868 million worth of these products.

As reported earlier, in 2022, Ukraine’s steelmaking companies reduced revenues from ferrous metal exports by 67.5% compared to 2021, to $4 billion 533.088 million. During this period, ferrous metals accounted for 10.26% of total revenues from exports of goods, compared to 20.49% in 2021. At the same time, last year Ukraine reduced imports of similar products by 38.3% to $954.387 million.

In addition, in 2022, Ukraine reduced exports of metal products by 18.6% to $1 billion 52.512 million. Imports of metal products fell by 42.9% to $643.162 million over the year.

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Exports of Ukrainian flour increased by 20%

In 2022/23 marketing year (MY), Ukrainian flour millers increased flour exports to 149.7 thsd tonnes, which is 20.1% higher than in the pre-war 2020/2021 MY, when it reached 124.6 thsd tonnes, said Serhiy Serhii Sakirkin.

“That is, in a year when the sea was safe, containers (the cost of which was constantly cried about) of bran were in demand, the overstocking of warehouses could not be imagined even in bad dreams – but only 125 thsd tonnes. And here the sea is only in Romania and further, wild bets on trucks to ports and European consumers… Logistics is a nightmare! And 150 thsd tonnes!” he wrote in the review for APK-Inform analytical agency.

According to the report, in 2021/2022 MY the flour exports were the record low and amounted to 69.8 thsd tonnes. In the current marketing year, the export of Ukrainian flour is expected to reach 180 thsd tonnes, according to the industry association.

Considering the dynamics of flour exports by months, Sakirkin recalled that from March to June 2022, there was an “unclear state of affairs”.

“Then it became clear that we had to work and work in a new way. In July, we squared our shoulders and continued to work almost without disruption. Rare stability in contrast to the previous two years,” the expert said.

According to him, the price of flour last season was influenced by the global price factor and very expensive logistics.

“The terms of delivery, which include payment for transportation, are represented by other prices, but this is not a profit, unfortunately… By the way, the price dynamics of 2022/23 MY, if we do not take absolute figures, is very similar to the dynamics of the pre-war 2020/21 MY,” the expert said.

He emphasized that the war had a significant impact on the geography of Ukrainian flour supplies. Previously, North and Central Africa, especially the UAE, dominated, but now seven out of 10 countries, where the largest volumes of Ukrainian flour were shipped, are European countries.

“Let’s say the usual annual volume is exported to Moldova. But other countries, if they ever got Ukrainian flour, it was in tiny quantities. Now it is thousands, sometimes even tens of thousands of tons,” Sakirkin wrote.

The industry association specified that 33.94 thousand tons of flour were supplied to Moldova, which accounted for 23% of total exports, 22.16 thousand tons (15%) to Poland, 14.7 thousand tons (10%) to Palestine, 14.7 thousand tons (10%) to Romania, and 14.7 thousand tons (10%) to tons (10%), Romania – 12.98 thousand tons (9%), Croatia – 10.77 thousand tons (7%), Hungary – 7.96 thousand tons (5%), Turkey – 7.55 (5%), Israel – 6.87 thousand tons (5%), Slovakia – 6.35 thousand tons (4%) and the Czech Republic – 4.43 thousand tons (3%).

The top ten largest exporters were only producers, including Kalush Milling Company, Novaagro LLC, Khmelnytsky Milling Company, Vinnytsia Milling Company No. 2, Vlad LLC, and others, the Millers of Ukraine Association noted.

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Ukraine increased exports of scrap metal by 3.7 times

In January-September of this year, Ukrainian enterprises increased exports of ferrous scrap by 3.7 times compared to the same period last year, up to 131.131 thousand tons.

According to the statistics released by the State Customs Service (SCS), in monetary terms, exports of scrap metal amounted to $37.749 million in the period under review (a threefold increase).

At the same time, the export of scrap metal has been growing since March: in January, about 8.28 thousand tons of scrap were exported, in February – 16.5 thousand tons, in March – 15.45 thousand tons, in April – about 16.19 thousand tons, in May – 21.003 thousand tons, in June – 14.6 thousand tons, in July – 9.567 thousand tons, in August – 15.849 thousand tons, and in September – 13.7 thousand tons.

Scrap metal was exported to Poland (86.62%), Greece (7.16%) and Bulgaria (2.88%).

In the first two months of the year, the country did not import scrap metal; in March-September, it imported 793 tons of scrap worth $301 thousand (52.16% from Slovakia, 22.26% from Poland, 9.3% from Estonia).

Earlier, Ukrmetallurgprom President Oleksandr Kalenkov stated in an article on the Interfax-Ukraine website that scrap metal is exported through the European Union, which has a preferential export duty of EUR3 per ton, and from there the raw materials are redirected to real customers. Exporting raw materials directly to customers would cost EUR180 in export duty, and the Ukrainian budget has already lost UAH 350 million.

According to him, the State Bureau of Investigation has already taken an interest in such export schemes.

The head of Ukrmetallurgprom called for a temporary ban on the export of ferrous scrap to provide steelmakers with strategically important raw materials in the ongoing war.

“If the scrap metal remains in the country, more than 500,000 people will be employed and the country will receive millions in foreign exchange earnings from steel exports. At the same time, the military will also benefit, as steelmakers do a lot to help the military by purchasing equipment and vehicles for them and even producing bulletproof vests. No one benefits from scrap exports. That is why the government should be proactive and temporarily ban exports until the situation stabilizes and ceases to threaten national economic security,” Kalenkov said.

He clarified that a ton of scrap metal processed into steel brings in 10 times more to the budget than the EU export duty, which is about $300 per ton.

As reported, in 2022, Ukraine reduced exports of ferrous scrap by 11.5 times compared to the previous year to 53,557 thousand tons, while in monetary terms it decreased by 12.4 times to $19.271 million. At the same time, last year the country reduced imports of scrap metal in physical terms by 12.6 times to 1,824 thousand tons. tons, compared to the previous year – to $19.271 million tons, in monetary terms by 12.9 times – to $3.488 million. Imports of scrap metal in 2022 were mainly from Turkey (78.92% of supplies in monetary terms), the Russian Federation (13.25%) and Cyprus (5.08%); exports – to Turkey (38.97%), Poland (34.25%) and Greece (10.12%).

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Ukraine reduced exports of titanium ores by 96.3%

In January-September this year, Ukraine reduced exports of titanium ores and concentrate in physical terms by 96.3% compared to the same period last year, to 9,033 thousand tons.

According to statistics released by the State Customs Service, exports of titanium ores and concentrate decreased by 84.7% to $15.104 million in monetary terms.

The main exports were to Turkey (36.06% of supplies in monetary terms), Japan (21.25%) and India (6.75%).

During the period, Ukraine imported 1 ton of such ore from the Netherlands for $2 thousand.

As reported, in 2022, Ukraine reduced exports of titanium ore and concentrate in physical terms by 41.8% compared to the previous year to 322.143 thousand tons, and in monetary terms by 19.6% to $130.144 million. At the same time, the main exports were made to the Czech Republic (47.91% of supplies in monetary terms), the United States (11.94%) and Romania (9.75%).

In 2022, Ukraine imported 196 tons of similar products from Senegal (70.41%) and Turkey (29.59%) for $115 thousand.

In Ukraine, titanium ores are currently mined mainly by the United Mining and Chemical Company (UMCC), which manages Vilnohirsk Mining and Metallurgical Plant (VGMK, Dnipro region) and Irshansk Mining and Metallurgical Plant (Irshansk, Dnipro region). ) and Irshansk Mining and Processing Plant (IGOK, Zhytomyr region), as well as Mezhirichinsky GOK and Valky Ilmenite (both based in Irshansk, Zhytomyr region).

In addition, Velta (Dnipro) has built a mining and processing plant at Birzulivske deposit with a capacity of 240 thousand tons of ilmenite concentrate per year.

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Ukraine reduced exports of dairy products by 9.7%

In the first nine months of this year, Ukraine reduced the turnover of dairy products by 9.7% compared to the same period last year – from $353.4 million to $318.8 million, the press service of the Union of Dairy Enterprises of Ukraine (UDEP) reported.

According to the published data, the volume of dairy exports decreased by 23.5% in monetary terms to $140.2 million compared to $183.5 in January-September 2022. The business association attributes this decline to the price factor. At the same time, imports increased by 5.2% – from $169.9 million to $178.6 million.

The UMSU noted that the export-import balance for the reporting period was negative – $38.3 million, while for the same period last year it was positive – $13.6 million.

“Of all the exported products, the positive balance was maintained in the trade of butter, as well as milk and cream, both condensed and non-condensed. Exports of other dairy products, such as fermented milk, whey, and all types of cheese, declined significantly. The situation in cheese trade is even worse. Although their exports increased slightly compared to last year, imports grew significantly more, and the balance worsened accordingly,” the association stated.

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