Business news from Ukraine

UKRAINE’S ROLLED METAL MARKET UP BY 20% IN JAN-OCT

Ukrainian enterprises in January-October this year increased their consumption of rolled metal by 19.42% compared to the same period last year, to 4.324 million tonnes. According to a press release of the Ukrmetalurgprom association on Tuesday, during this period 969,700 tonnes were imported, or 22.43% of the domestic market for rolled metal consumption.
“In January-October 2021, the capacity of the domestic market amounted to 4.324 million tonnes of rolled metal, of which 969,700 tonnes, or 22.43%, accounted for imports. In January-October 2020, the capacity of the domestic market was 3.621 million tonnes, of which 1.028 million tonnes, or 28.38%, were imported. Thus, in ten months of 2021, there is an increase in the capacity of the domestic market for rolled metal products by 19.42% compared to January-October 2020, with a simultaneous decrease in the import share by 5.96%,” the press release states.
At the same time, the structure of imports in January-October 2021 is characterized by a significant domination of flat products over long products (54.66% and 42.28%, respectively); in the same period of 2020, a domination of flat products over long products was practically comparable with 2021 (56.38% and 42.44%, respectively).
According to Ukrmetalurgprom, in January-October-2021, Ukrainian metallurgical enterprises produced 15.99 million tonnes of rolled metal (105.4% compared to January-October 2020), of which, according to the information of V.S.K. Group LLC, about 12.63 million tonnes, or 79%, were exported. Over ten months of 2020, the share of exports was 82.9% (12.58 million tonnes with total production of 15.17 million tonnes of rolled metal).
The share of semi-finished products in export supplies accounted for 46.17% over ten months of 2021, which is lower than the indicator for the same period in 2020 (51.03%). The share of flat-rolled products in export supplies in January-October 2021 is noticeably higher than in January-October 2020 (37.86% and 32.08%, respectively). The share of long products in export supplies is slightly inferior to the indicator for the same period last year (15.98% in 2021 versus 16.88% in 2020).
According to V.S.K. Group, the main export markets of Ukrainian metal products in January-October 2021 were the European Union (36.5%), other European countries (20.1%) and NAFTA countries (9.7%).
Among metallurgical importers over ten months of 2021, the CIS ranks first (35.4%), the second is the countries of Asia (21.6%) and the third is the EU-27 (20.5%).

, ,

UKRAINIAN METAL COMPANIES INCREASE EARNINGS FROM FERROUS METAL EXPORT TO $4.9 BLN IN JAN-MAY

Ukrainian metal companies in January-May 2021 increased earnings from exports of ferrous metals by 49.1% compared to the same period last year, to $4.92 billion.
According to the statistics released by the State Customs Service, in May, earnings from exports of ferrous metals amounted to $1.19 billion.
Ukraine boosted imports of similar products by 16.3% in January-May 2021, to $440 million. In May, this figure was $115.04 million.
In addition, Ukraine increased exports of metal products by 18.9% in the first five months of 2021, to $421.03 million. In May, their export amounted to $99.21 million.
During this period, imports of metal products increased by 22.2%, to $383.15 million. In May, they were imported for $93.12 million.
As reported, in 2020, Ukrainian metal companies reduced earnings from exports of ferrous metals by 12% compared to the previous year, to $7.690 billion. At the same time, Ukraine in 2020 reduced imports of similar products by 17%, to $1.040 billion.

, , , ,

UKRAINE MAY LOSE EUR 700 MLN FROM DECREASE IN EXPORTS OF METAL PRODUCTS DUE TO SOME RESTRICTIONS

Ukraine may lose EUR 700 million due to restrictions on the supply of Ukrainian metal products as part of the introduction by the European Union of the Carbon Border Adjustment Mechanism (CBAM), according to a study by the information and analytical center GMK Center presented at a roundtable devoted to the impact of CBAM on the metallurgy of Ukraine held on April 9.
According to the press release, early March 2021, the European Parliament approved a resolution introducing the Carbon Border Adjustment Mechanism (CBAM). The European Union regards the CBAM as a special fiscal instrument that will force manufacturers of imported products to pay the same price for CO2 emissions that European producers pay. The official proposal for CBAM from the European Commission is expected to appear by the end of the second quarter of 2021. CBAM is planned to be in effect no later than 2023.
According to the study conducted by analysts of GMK Center, the negative impact on the metallurgy of Ukraine from the introduction by the European Union of the CBAM can reach EUR 700 million, or 0.5% of the gross domestic product compared to 2019.
“The metallurgical industry of Ukraine will be one of the most affected as a result of the introduction of CBAM. This will happen due to our close partnership with the EU. After all, domestic metallurgists supply 26% of marketable products to the European market, which is more than to our domestic market. Our competitors do not have such a high dependence on the EU market. The introduction of the CBAM will mean a decrease in the competitiveness of Ukrainian exports, losses for the domestic economy, a rupture of production chains between European and Ukrainian enterprises,” Director of GMK Center Stanislav Zinchenko said.
According to him, the annual export losses of Ukrainian metallurgy from the introduction of CBAM by the European Union are estimated at EUR 155-200 million per year, depending on the scenario. It will also reduce the financial results of the industry by EUR 105-200 million per year.
The CBAM covers about EUR 2.5 billion of metallurgical exports per year. The exact scale of damage to national producers depends on the form of implementation of the CBAM.
As a result of the effect of the carbon tax, one can expect a decrease in the volume of pig iron production by 500,000 tonnes (2.5% down compared to the level of 2019) and long products (including square billets) by 110,000 tonnes (1.4% down).
According to Chief Analyst at GMK Center Andriy Tarasenko, this could also lead to a decrease in the volume of capital investments in the amount of up to EUR 130 million per year (12% down compared to the level of 2019). In the long run, this will mean chronic investment lag and a competitive disadvantage.
“The CBAM should not be applied to Ukraine, since we have already taken on the goals of the European Green Deal. The exclusion of Ukraine from the CBAM, on the contrary, will be an incentive for the Ukrainian economy,” Zinchenko said.

, ,

UKRAINE INCREASES EARNING FROM EXPORT OF FERROUS METALS BY 30% IN Q1

Metallurgical enterprises of Ukraine in January-March 2021 increased receipts from exports of ferrous metals by 29.7% compared to the same period last year, to $2.670 billion.
According to updated statistics released by the State Customs Service on Friday, ferrous metals accounted for 19.44% of total receipts from the export of goods during this period versus 16.79% in the first three months of 2020.
In March, revenues from exports of ferrous metals amounted to $1.160 billion.
At the same time, Ukraine in January-March 2021 reduced imports of similar products by 3.9%, to $214.215 million. In March, this figure was $92.685 million.
In addition, Ukraine in January-March 2021 increased the export of metal products by 10.4%, to $236.069 million. In March, metal products for $ 95.530 million were delivered.
During this period, the import of metal products increased by 6.5%, to $209.229 million. In March, metal products for $83.853 million were imported.

, ,

UKRAINIAN METAL COMPANIES IN JAN-MARCH INCREASE EARNINGS FROM EXPORTS OF FERROUS METALS BY 30%

Ukrainian metal companies in January-March 2021 increased earnings from exports of ferrous metals by 30% compared to the same period last year, to $2.67 billion.
According to updated statistics released by the State Customs Service, in March, earnings from exports of ferrous metals amounted to $1.16 billion.
At the same time, Ukraine reduced imports of similar products by 4.5% in January-March 2021, to $214.2 million. In March, this figure was $92.68 million.
In addition, Ukraine increased exports of metal products by 10.7% in the first three months of 2021, to $229.46 million. In March, their export amounted to $90.79 million.
During this period, imports of metal products increased by 7.7%, to $207.94 million. In March, they were imported for $82.66 million.
As reported, in 2020, Ukrainian metal companies reduced earnings from exports of ferrous metals by 12% compared to the previous year, to $7.690 billion. At the same time, Ukraine in 2020 reduced imports of similar products by 17%, to $1.040 billion.

,

UKRAINIAN ENTERPRISES IN 2020 INCREASE CONSUMPTION OF ROLLED METAL

Ukrainian enterprises in 2020 increased the consumption of rolled metal by 4.4% compared to the previous year, to 4.904 million tonnes.
According to a press release from the Ukrmetalurgprom association, in 2020, some 1.228 million tonnes, or 25.4% of the domestic market for the consumption of rolled metal were imported.
“For the period January-December 2020, the capacity of the domestic market amounted to 4.904 million tonnes of rolled metal, of which 1.228 million tonnes, or 25.4%, accounted for imports. For the same period of 2019, the capacity of the domestic market was 4.697 million tonnes, of which 1.419 million tonnes, or 30.2%, were imported. Thus, for the 12 months of 2020, there is an increase in the capacity of the domestic market of rolled metal by 4.4% compared to January-December 2019, with a simultaneous a decrease in the import share by 5.2%,” the press release said.
In addition, it is reported that the import structure of 2020 is characterized by the domination of flat-rolled products over long products (55.84% and 42.93%, respectively), which is almost equal to the import structure in 2019 (some 55.21% and 41.87%, respectively).
According to Ukrmetalurgprom, in 2020, Ukrainian metallurgical enterprises produced 18.43 million tonnes of rolled metal (101.2% compared to 2019), of which, according to ETR-Spectr LLC, about 14.75 million tonnes or 80% were exported. In 2019, the export share was 82% (some 14.94 million tonnes with a total production of 18.21 million tonnes of rolled metal).
The share of semi-finished products in export deliveries in 2020 accounted for 50.77%, which is slightly higher than in 2019 (some 47.18%). Share of flat-rolled products in export deliveries in 2020 is almost equal to the indicator of 2019 (some 32.51% and 32.80% respectively). The share of long products in export deliveries last year is noticeably lower to the 2019 indicator (16.71% in 2020 versus 20.02% in 2019).
According to ETR-Spectr LLC, the main export markets for Ukrainian metal products in 2020 were the European Union (28.5%), other European countries (14.5%) and Asian countries (14.2%).
Among metallurgical importers in 2020 the first place is occupied by the CIS countries (38.5%), the second is the EU-28 (24.5%), and the third is Asian countries (20.5%).

, ,