Business news from Ukraine

UKRAINIAN ENTERPRISES INCREASE CONSUMPTION OF METAL BY 3.26%

Ukrainian enterprises increased the consumption of metal by 3.26% in January-May of this year compared to the same period last year, to 1.66 million tonnes.
According to an Ukrmetallurgprom association press release published on Friday, 434,700 tonnes, or 26.2% of the domestic metal consumption market, were imported in the first five months of the year.
“In January-May 2020, 1.66 million tonnes of rolled metal were delivered to domestic consumers, of which 434,700 tonnes, or 26.2%, were imported. For five months of 2020, there was an increase in the consumption of rolled metal in the domestic market compared to January-May 2019 by 3.26% with a simultaneous decrease in the share of the imported component by 7.6%,” the association said in the press release.
According to Ukrmetallurgprom, in January-May 2020, Ukrainian metal enterprises produced 7.43 million tonnes of rolled metal (93.8% compared to the same period in 2019), of which about 6.21 million tonnes or 83.5% were exported, according to information from ETR-Spectrum LLC.
The share of semi-finished products of export deliveries in January-May 2020 accounted for 49.74%, which exceeds the indicator for the period January-May 2019 (45.38%). The share of flat products of export deliveries in the first five months of 2020 is slightly lower than in the same period in 2019 (32.05% and 34.00%, respectively). The same picture is observed with regard to long products – 18.21% in January-May 2020 compared with 20.62% for the same period in 2019.
The main export markets for Ukrainian metal products in January-May 2020, according to ETR-Spectrum LLC, were the countries of the European Union (31.1%), Africa (14.8%) and other European countries (14.1%).
Among the metallurgical importers in January-May, the CIS was at the first place (39.1%), the EU-28 was the second (26.1%), and the Asian countries third (18.0%).

, ,

UKRAINE REDUCES SCRAP METAL EXPORTS BY 55%

Ukrainian enterprises in January-May of this year reduced export of scrap metal by 54.8% compared to the same period last year, to 16,489 tonnes (36,515 tonnes were exported in January-May 2019).
According to statistics released by the State Customs Service, in terms of money, scrap exports fell by 58.1%, to $4.181 million.
In January, 2,865 tonnes of scrap metal were exported, in February some 8,014 tonnes, in March 493 tonnes, in April 256 tonnes, and in May 4,861 tonnes.
At the same time, in January-May of this year, the country reduced imports of scrap metal in natural terms by 76.2% compared to the same period last year, to 6,841 tonnes. In monetary terms, this indicator decreased by 49.9%, to $7.411 million.
Scrap metal was imported mainly from Turkey (65.46% of supplies in monetary terms), the Russian Federation (26.52%) and the Netherlands (5.07%), exports were made to Turkey (78.41%), the Netherlands (11.29%), and Germany (7.22%).
In addition, the metal enterprises of Ukraine in January-May 2020 imported 1,602 tonnes of products of direct reduction of iron from ore according to code 7203 (hot briquetted iron), which is a substitute for cast iron and scrap metal, in the amount of $481,000, whereas in January-May 2019 they did not import this product from the Russian Federation and did not export it.

, ,

SCRAP METAL EXPORTS FROM UKRAINE PLUNGES BY 87%

Ukrainian enterprises in January-October 2019 decreased exports of ferrous scrap metal by 87.2% compared to the same period of 2018, to 40,736 tonnes (316,196 tonnes in January-October 2018). According to customs statistics released by the State Fiscal Service of Ukraine, exports of scrap metal in monetary terms fell by 89%, to $11.31 million ($102.5 million a year ago).
Some 103 tonnes of scrap metal was exported October, 3,551 tonnes in September, 155,000 in August, 204,000 tonnes in July, 208,000 tonnes in June, 8,068 tonnes in May, 8,791 tonnes in April, 8,246 in March, 8,252 tonnes in February and 3,140 tonnes in January.
At the same time, in January-October 2019, the country increased imports of scrap metal in kind by 46% compared to January-October 2018, to 45,669 tonnes. Imports in monetary terms increased 1.8%, to $29.495 million.
Imports of scrap metal for the mentioned period arrived mainly from Turkey (59.16% of deliveries in monetary terms), Russia (31.64%), and the Netherlands (2.26%); and major exports were shipped to Turkey (86.71%), the Netherlands (6.45%) and Germany (4.84%).
Ukrainian metal companies in January-October 2019 imported 1,462 tonnes of ferrous products obtained by direct reduction of iron ore (HS code 7203) – hot briquetted iron (HBI), which is a substitute for pig iron and scrap metal. The HBI was imported from Russia through July-August for a total value of $478,000 when 1,539 tonnes of HBI was imported through January-September 2018 with a total value of $509,000.
As reported, Ukrainian enterprises in 2018 decreased exports of ferrous scrap metal by 33% compared to 2017, to 327,547 tonnes. Exports of scrap metal in monetary terms fell by 13.3%, to $105.646 million.

, ,

SCRAP METAL EXPORTS FROM UKRAINE PLUNGES BY 87%

Ukrainian enterprises in January-September 2019 decreased exports of ferrous scrap metal by 86.9% compared to the same period of 2018, to 40,633 tonnes (307,922 tonnes in January-September 2018).
According to customs statistics released by the State Fiscal Service of Ukraine, exports of scrap metal in monetary terms fell by 88.8%, to $11.273 million ($100.290 million a year ago).
Some 3,551 tonnes of scrap metal was exported in September, 155,000 in August, 204,000 tonnes in July, 208,000 tonnes in June, 8,068 tonnes in May, 8,791 tonnes in April, 8,246 in March, 8,252 tonnes in February and 3,140 tonnes in January.
At the same time, in January-September 2019, the country increased imports of scrap metal in kind by 48% compared to January-September 2018, to 43,503 tonnes. Imports in monetary terms decreased 0.2%, to $26.521 million.
Imports of scrap metal for the mentioned period arrived mainly from Turkey (55.26% of deliveries in monetary terms), Russia (35.19%), and the Netherlands (2.51%); and major exports were shipped to Turkey (86.99%), the Netherlands (6.21%) and Germany (4.85%).
Ukrainian metal companies in January-September 2019 imported 1,462 tonnes of ferrous products obtained by direct reduction of iron ore (HS code 7203) – hot briquetted iron (HBI), which is a substitute for pig iron and scrap metal. The HBI was imported from Russia through July-August for a total value of $478,000 when 1,539 tonnes of HBI was imported through January-September 2018 with a total value of $509,000.
As reported, Ukrainian enterprises in 2018 decreased exports of ferrous scrap metal by 33% compared to 2017, to 327,547 tonnes. Exports of scrap metal in monetary terms fell by 13.3%, to $105.646 million.

, ,

UKRZALIZNYTSIA STARTS SELLING SCRAP METAL VIA PROZORRO.SALES – ECONOMY MINISTRY

JSC Ukrzaliznytsia has put up for sale four lots of scrap ferrous metal with the total starting price of UAH 260 million at the platform of state-owned enterprise (SOE) ProZorro.Sales.
The Economic Development and Trade Ministry of Ukraine said in a Wednesday press release that the auction is scheduled for January 11, 2019. Bids can be submitted before January 10.
Ukrzaliznytsia started selling its assets via the ProZorro.Sales platform in pursuance of government resolution No. 1054 dated November 22, 2017.
“These are the first lots for the sale of Ukrzaliznytsia’s assets, which appeared in the ProZorro.Sales system, and immediately the large quantities of a strategically important resource for metallurgists – scrap metal. This is a really important precedent, since Ukrzaliznytsia is the largest owner of scrap metal in Ukraine. And now the company can carry out its sales at the market price set during the bidding through the ProZorro.Sales system,” Deputy Economic Development and Trade Minister Maksym Nefyodov said.
In turn, acting Board Chairman of Ukrzaliznytsia Yevhen Kravtsov said that the company sees several positive aspects in this event.
“Firstly, the sale of scrap metal from railways is our help to the domestic metallurgical industry. After all, for these first tenders, Ukrzaliznytsia put more scrap metal than Ukrainian metallurgists imported this year up for sale. However, the main thing is that using scrap metal, for the first time Ukrzaliznytsia has made the way envisaged in the rules of managing property that the government approved and brought to us. For us, this is now an effective mechanism for effectively managing the property of the company to increase its earning power and improve the customer service,” he said.

, , ,

RADA COMMITTEE HEAD VIKTOR HALASIUK ADVOCATES INVESTIGATION INTO 25% RISE IN IMPORTS OF METAL

Chairman of the parliamentary committee for industrial policy and entrepreneurship (Deputy Head of the Liashko Radical Party for Economic Policy) MP Viktor Halasiuk has said that a special investigation into growth of imports of ferrous metals to Ukraine by 25% should be conducted and he advocates the introduction of safeguard measures for the supplies of ferrous metals from China, Turkey, Russia and other countries.
“The Radical Party demands from the government and the Ministry of Economy to immediately conduct a special investigation into the unprecedented 25% growth this year in imports of ferrous metals and products from Ukraine. In addition, the people’s deputies insist on the introduction of preventive measures to protect Ukrainian metallurgy from predatory imports from China, Turkey , Russia and other countries,” the industrial policy committee said in a press release of with reference to Halasiuk.
According to him, the closure of the largest global markets and the intensification of the struggle for existing sales markets for metal products is a real threat to the Ukrainian industry and economy. At the same time, imports of ferrous metals in Ukraine have already grown by 25%, therefore, hundreds of thousands of jobs in the mining and metallurgy sector and related industries are under attack.
“We demand urgent measures to prevent the growth of imports of metal products from China, Turkey, the Russian Federation and other countries that are fiercely fighting for new markets for their products. It is also important to lobby for access of Ukrainian metal products to foreign markets, including through the export credit agency,” Halasiuk said, stressing that the United States, Canada, the EU, China, EurAsEC, Turkey, some African countries and others actively protect the domestic market of metal products from imports, increasing imports duties by 25% and more.
“Governments of the world’s largest economies are taking all possible and impossible measures to protect their own producers of metal and metal products,” he said.

, , , ,