Business news from Ukraine


The main pipe enterprises of Ukraine in January-June of this year increased production of pipes from ferrous metals, according to recent data, by 16.4% compared to the same period last year, to 470,800 tonnes, in particular, in June – 94,300 tonnes. The Ukrtruboprom association told Interfax-Ukraine, in particular, the enterprises of the association during this period increased production of pipes by 16.1%, to 309,400 tonnes. In particular, in June they increased output compared to the same period last year by 56.5%, to 68,400 tonnes, compared to May of this year – by 16.9%.
At the same time, Interpipe Niko Tube and Trubostal demonstrate positive dynamics, while in the six months they increased pipe production by 58.6% and 11.1%, respectively. At the same time, Centravis reduced production by 10.2%, Interpipe Novomoskovsk Pipe Plant – by 23.2%.
Dnipropetrovsk Pipe Plant continues to be idle.
According to Heorhiy Polsky, the director general of Ukrtruboprom, for the fourth month in a row there has been an increase in the production of seamless pipes at the enterprises of the association due to the preservation of a favorable situation in foreign markets.
“Consumption of oil and gas pipes is at a high level due to the growth of drilling volumes, mainly in the United States and the Middle East. At the same time, in Ukraine, even against the background of rising gas prices, drilling volumes and, accordingly, consumption of such pipes are still far away from the pre-crisis level of 2018-2019. At the same time, pipe products for construction purposes are also in demand in the EU countries, the MENA region, as well as in Ukraine,” the top manager stated.
According to him, the sharp rise in the price of strip (although the rise in prices for it has practically stopped at present) continues to have a negative impact on the production of welded pipes.

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Production of potato in Ukraine in the first half of 2021 decreased by 19.8% compared to the first half of 2020, to 240,800 tonnes, and of vegetables – by 4.8%, to 684,700 tonnes, according to the website of the State Statistics Service.
The State Statistics Service said that as of July 1, potatoes were harvested from a total area of 17,900 hectares, which is 22.2% less than on July 1, 2020. The average potato yield increased by 9.7%, to 141.8 centners per hectare. The leaders in potato production were Kherson region, which harvested 79,800 tonnes (less by 36.1% compared to January-June 2020), Zhytomyr region – 46,500 tonnes (less by 0.8%) and Vinnytsia region – 39,800 tonnes (less by 2.9%).
In addition, it is reported that the total production of vegetables in Ukraine in the first half of 2021 decreased by 4.8% compared to the first half of 2020, to 684,700 tonnes. At the same time, production of open field vegetables remained at the level of January-June 2020 – 386,900 tonnes.
The yield of open field vegetables in the first half of the year increased by 4.6%, to 183.6 centners per hectare. As of July 1, 2021, crop data were collected from 21,900 hectares, which is 1.4 less than on July 1, 2020. The leaders in the cultivation of open field vegetables during this period were Kherson region, which harvested 234,500 tonnes of this crop (an increase of 2.3 times compared to January-June 2020), Lviv region – 312,400 tonnes (more by 24.8%) and Dnipropetrovsk region – 19,500 tonnes (more by 58.9%).
According to the State Statistics Service, the production of fruit and berries in January-June 2021 decreased by 7.2% compared to January-June 2020, to 182,100 tonnes. The leaders in their cultivation were Dnipropetrovsk region, which harvested 21,400 tonnes of fruit and berries (less by 6.1% versus January-June 2020), Donetsk region – 21,100 tonnes (more by 54.3%) and Zaporizhia region – 17,500 tonnes (more by 86.8%).

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Sales of meat for slaughter (in live weight) decreased by 2.5% in Ukraine in January-June 2021, year-over-year, to 1.60 million tonnes, milk production by 5.3%, to 4.32 million tonnes, eggs by 13.6%, to 7.38 billion pieces, the State Statistics Service of Ukraine said on the website on Friday.
According to it, as of July 1, the poultry population in Ukraine decreased by 3.8%, year-over-year, to 239.2 million heads, cattle by 6.5%, to 3.23 million heads (including the number of cows decreased by 5.8%, to 1.67 million heads), sheep and goats by 5.0%, to 1.39 million heads, while the number of pigs increased by 0.7%, to 6.11 million heads.
The sale of poultry for slaughter by agricultural enterprises decreased by 0.6% in the six months of 2021 versus January-June 2020 and amounted to 325.06 million heads, the sale of pigs increased by 10.1%, to 2.51 million heads, cattle decreased by 14.2%, to 157,900 heads, sheep by 27.9%, to 24,000 heads.
Agricultural enterprises for the same period sold 21.5% fewer eggs, 3.52 billion pieces.
The State Statistics Service said that for the specified period, Kyiv region became the leaders in the production of eggs with 1.32 billion pieces (2% more year-over-year), Khmelnytska with 260 million pieces (33.2% less), Kherson with 252.3 million pieces (28.6% less) and Dnipropetrovsk regions with 249.9 million pieces (5.2% less).
According to the statistics department, in the first half of 2021 most milk was produced by the enterprises of Poltava some 195,800 tonnes (1% less year-over-year), Cherkasy some 143,200 tonnes (5.1% less), Kharkiv some 123,200 tonnes (1.7% more) and Chernihiv some 115,100 tonnes (7.0% less).

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DTEK Oil & Gas produced over 960 million cubic meters of gas in January-June 2021, which is 10% more than in the same period in 2020, the company said.
“DTEK Oil & Gas is steadily increasing gas production thanks to systemic investments and the introduction of innovative technologies,” CEO of the company Ihor Schurov said.
The company is reportedly planning in the fourth quarter of this year to complete a large infrastructure project to build a refrigeration unit to optimize production at Machukhske field (Poltava region).
DTEK Oil & Gas has also already started geological exploration and office work in new deposits – Budyschansko-Chutivska and Zinkovska fields, which supplemented the company’s asset portfolio in 2020, the report says.
DTEK Oil & Gas recalled that in general, in 2021, the company is carrying out a program of drilling, workover and stimulation at base fields in Poltava region: during the first half of the year, the company commissioned two new wells, as well as carried out workover and stimulation operations at 21 wells of the operating stock.

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PrJSC Dniprovsky Metallurgical Plant (DMZ, formerly Evraz-DMZ), part of DCH Steel from DCH Group of businessman Oleksandr Yaroslavsky, in January-June this year increased the output of finished rolled products 12 times compared to the same period last year – up to 117,500 tonnes from 10,000 tonnes. According to the company, in January-June of this year, DMZ also increased the production of pig iron to 151,400 tonnes from 18,000 tonnes (an increase of 8.4 times) and steel up to 144,000 tonnes from 13,000 tonnes (11 times more). Coke production increased by 5.3% compared to the same period last year, to 242,200 tonnes.
DMZ in June 2021 increased the production of pig iron in comparison with the same period last year by 38%, to 24,700 tonnes, steel – by 102.2%, to 27,100 tonnes, rolled products – by 100.9%, up to 21,500 tonnes. Coke production remained at the level of 40,000 tonnes.
The metallurgical workshops of the DMZ resumed work after a downtime in May-June 2020, before that, for seven months, the plant produced only coke-chemical processing products.
The plant specializes in production of steel, cast iron, rolled products and products from them. In 2020, the plant reduced steel output by 66% compared to 2019 – to 175,000 tonnes, pig iron – by 67.3%, to 160,000 tonnes, rolled products by 68.4%, to 140,000 tonnes.
On March 1, 2018, DCH Group signed a purchase agreement of Evraz DMZ.

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Nikopol Ferroalloy Plant (NFP, Dnipropetrovsk region) in January-May this year increased production by 12.5% compared to the same period last year, to 259,690 tonnes.
As the Ukrainian Association of Producers of Ferroalloys and Other Electrometallurgical Products told Interfax-Ukraine, in the five months, the plant increased production of silicon manganese by 9.6%, to 236,710 tonnes, and ferromanganese – by 53.9%, to 22,980 tonnes.
In May, 59,290 tonnes of ferroalloys were produced.
Nikopol Ferroalloy Plant is Ukraine’s largest ferroalloy smelter. It uses imported and domestic raw materials for the production of ferroalloys.
Nikopol plant is controlled by EastOne Group, established in autumn 2007 as a result of restructuring of Interpipe Group, and Privat Group, both based in Dnipro.

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