Business news from Ukraine

Ukraine increased pig iron exports in first half of year, main importer – Poland

Ukraine in January-June this year increased exports of pig iron in physical terms by 26.1% compared to the same period last year – up to 799.692 thousand tons. According to statistics released by the State Customs Service (SCS) on Monday, during the period, pig iron exports in monetary terms amounted to $309.146 million (down 7.9%).
At the same time, exports were mainly to Poland (66.02% of shipments in monetary terms), Spain (15.82%) and the Czech Republic (8.13%).
For six months of 2023 Ukraine imported 37 tons of pig iron for $52 thousand from Germany (61.54%) and Brazil (38.46%), with no imports of pig iron in June.
As reported, Ukraine in 2022 reduced exports of pig iron in physical terms by 59% year-on-year to 1 million 325.275 thousand tons, in monetary terms by 61.1% to $638.774 million.
In 2022, Ukraine imported 40 tons of pig iron worth $23 thousand, while in 2021 – 185 tons of pig iron worth $226 thousand.
Exports were mainly to the USA (38.47% of shipments in monetary terms), Poland (32.91%) and Turkey (8.12%), imports – from Germany (100%).

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Ukraine allows export of 20,000 tonnes of sugar to Romania

The Cabinet of Ministers has resumed sugar exports to Romania and set a quota for the supply of this product in the amount of 20,000 tonnes until September 15.
As the representative of the Cabinet of Ministers in the Verkhovna Rada, Taras Melnychuk, reported on his Telegram channel, the decision to amend the volume of quotas for goods which export is subject to licensing, approved by government resolution No. 1466 dated December 27, 2022 “On approval of the lists of goods, the export and import of which is subject to licensing and quotas for 2023” adopted at a government meeting on Friday.
According to the report, applications for obtaining licenses will be considered in the manner established by the Ministry of Economy, and the issuance of licenses – based on applications for obtaining licenses to export such goods to Romania and approvals by the Ministry of Agrarian Policy and Food.
Licenses will be issued within one day without the involvement of a subject of foreign economic activity as part of the interagency exchange of information.

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Export of Ukrainian flour can reach 150 thousand tons – opinion

Ukrainian mukomols and cereals producers began to master and gain a foothold in new markets and increase export volumes, in 2023 they can supply 150 thousand tons of flour to foreign markets, said the chairman of the association “Ukrpischeprom”, director of the union “Mukomols of Ukraine” Rodion Rybchinsky.

“In calendar year 2021 we exported 102 thousand tons of flour, in 2022 the active export began in September and reached 80 thousand tons. In the five months of this year, we have already exported 74,000 tons. With such dynamics, we see the possibility of exporting 150 thousand tons of flour by the end of the year,” he said during a discussion on the prospects of exports during the war, held by the Institute for Economic Research and Policy Consulting.

According to his information, the war has made significant changes in the export of flour and cereals and bran. Previously these products were exported by sea from the main shipment bases in Kherson, Nikolaev, and Odessa. Traditional importers of Ukrainian flour and cereals were UAE, Palestine, Somalia, Israel, and bran – Turkey, where 95% of them were sent by sea.

The war has made significant adjustments to the geography of sales of these products, and today the largest importers of Ukrainian flour are Moldova, Poland, Palestine, Romania, Croatia and Turkey, said Rybchynskyy.

In the EU countries, in particular Poland, Romania, Germany, Spain, Portugal, are actively exported cereals. Last year 68 thousand tons of cereals were exported to foreign markets, while during five months of 2023 – 38 thousand tons.

In this case, Rybchinsky noted a change in the ways of sending flour and cereals for export.

“We do not use the Black Sea Grain Initiative and the Danube ports. There the rent of one grain warehouse at a distance of 5-10 km from the quay wall can cost $100 thousand per month. Therefore, logistics related to work on the Danube, eat up all the possible earnings,” said the expert, adding that the main export of flour and cereals is carried by road and only 15% by rail.

According to the head of the industry association, exporters now have problems when crossing Western borders. Despite the electronic queue, cars with products stand in queues for 2-3 weeks.

“This has led to the loss of substantial contracts with Polish and Romanian retail chains, where Ukrainian suppliers have not been able to ensure timely delivery of products. Currently, Ukrainian mills have to work mainly with industrial processors,” Rybchynsky explained.

At the same time, he noted that Polish pasta made from Ukrainian flour has already appeared on the Ukrainian market.

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“Ukrzaliznytsia” calls for export of cargo through Hungarian BCPs

Ukrzaliznytsia JSC (UZ) has addressed to the carriers with a request to increase transportation through Hungarian border crossing points (BCP), which are currently underutilized and have reserves for cargo transfer, Deputy Director of Commercial Work Department of the company Valery Tkachev said on Tuesday at the online meeting with Hungarian carriers.
According to him, in June a total of 1,789 cars were handled at Chop-Zakhon crossing point and they transported 95.8 thousand tons of cargo of different nomenclature: on average this crossing in both directions handles 59.6 cars per day (w/w), including 51 cars for export from Ukraine.
Comparing June indicators with May ones, Tkachev noted an increase of cargo flow at this gateway by 13 w/c, or 27.4%.
UZ representative reminded that during last four months the maximum level of cargo traffic through Chop-Zakhon was registered in March – 83 car/cargo.
Tkachev noted that to date the main nomenclature of the crossing “Chop-Zakhon” grain, which in June was transferred at 50.5 r/c.
According to his information, there are 4 carriers at this intersection. The biggest is Rail Cargo Hungary (RCH), which in June handled 904 cars at a rate of over 30 b/c. RCH’s largest nomenclature is grains (707 cars), apart from which 85 cars with containers and imported oil cargoes were handled.
MMV Magyar Maganvasut Zrt (MMV) handled 421 wagons at the Chop-Zahan BC in June at a rate of 14 v/c. Grain also accounted for the bulk of the cargo – 370 wagons, and oil cargo imports also accounted for a significant share.
Magyar Vasuti Aruszallito Kft. (MVA) handled 402 cars at 13.5 v/c, of which 377 were loaded with grain.
CD Cargo Hungary accounted for 62 cars of grain cargo in June
“As for Chop-Zakhon, we don’t see any queue on the wide gauge (1524 mm), the narrow gauge (1435 mm) is dealt with. That is, I personally do not see any problems with the transfer and with the work of “Chop-Zalkhan”,” – said Tkachev.
According to UZ in June in Batevo-Epereshkoe 3 731 carriages with 252,3 thousand tons of different nomenclature were processed. On average, 121 v/c was dispatched from Ukraine for export, while 3.5 v/c was received. In total, this joint handles 124.4 v/c.
“For Batevo-Epereshka, we see a significant slump and a drop in cargo work of 28.5 v/c, or 18.6%. If we look at the grain group, we transfer an average of 20.6 v/c through this crossing. Last month this figure was almost 26 v/c. We in March, for example, handled 94 grain v/c. Today, unfortunately, “Batevo-Epereshka” only about 21 c / c, “- said Tkachev.
According to his information, two carriers – MMV and RCH – work at this junction. MMV handled 19 v/c: in June 247 out of 565 cars most of them were used for oil.
In turn, RCH on “Batevo-Epereshka” in June handled 3166 cars with 215,2 thousand tons of various cargo types, including the ore – 1945 cars, grain – 531, coal – 205. Its average daily rate is about 105.5 v/c.
“There are only 385 cars moving in the Batevo-Epereshke direction, including 196 with ore, 30 with grain, 25 with cake and 26 with oil. The junction is underloaded, as “Chop-Zakhon”, so there is an opportunity to increase”, – added Tkachev.
He also noted that a total of two Hungarian crossing handle the largest volume of grain per day – more than 70 cars.
“This is more than all the joints of Poland (four BCPs), Romania and other countries. That is, today Hungary is the leader in handling grain cargoes,” – stated Tkachev.

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Lebanon opens market for export of sheep and goats from Ukraine

Lebanon has opened a market for the export of small ruminants from Ukraine, particularly sheep and goats for slaughter, according to the press service of the State Service of Ukraine for Food Safety and Consumer Protection.
According to the State Consumer Service, this is the third certificate, which the countries have concluded. Previously, the competent authorities of Ukraine and Lebanon had agreed on the forms of certificates for export of milk and dairy products and cattle for slaughtering from Ukraine.
You can familiarize yourself with the conditions for obtaining the certificate and the information required for its issuance on the official web portal of the State Service for the Protection of Consumers in the section “International Cooperation” – “Veterinary and Safety” – “Certificates for export from Ukraine”.

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Moldova in January-March increased export of alcoholic beverages to Ukraine more than 6 times

Moldova in January-March 2023 increased 6.5 times the export of alcoholic beverages to Ukraine – up to $ 9.40 million compared to the same period last year ($ 1.44 million), the National Bank of Moldova (NBM) said.
“With a share of 17.6% of the total export volume, Ukraine has become the main market for Moldovan alcohol, pushing Belarus and Romania to second and third place with shares of 17.1% and 14.5%, respectively,” – as quoted from NBM information, Moldovan edition mold-street.com
At the same time, Ukraine was on the first place among the importers of alcohol to Moldova, Russia – on the eighth.
In the first quarter of this year, Moldova increased the export of alcohol and ethyl alcohol by 26.8%, which in monetary terms amounted to $ 53.47 million.
The Kiev analytical Club of Experts, in order to promote Ukrainian wine, began a series of seminars and tastings. You can learn more about it by following the link

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