Business news from Ukraine


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.

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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.

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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.

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Ukrainian enterprises in January-November 2018 boosted scrap metal consumption by 6.51% year-over-year, to 4.976 million tonnes.
According to a report of the Ukrmetallurgprom association issued on Wednesday, over the period 1.346 million tonnes of scrap metal was imported (a rise of 12.54% year-over-year), or 27.1% of the total market.
The share of flat scrap was 50.82% and the share of long scrap was 46.04%, and a year ago the figures were 56.86% and 41.64% respectively.
According to the Ukrmetallurgprom, in January-November 2018 Ukrainian enterprise produced 16.84 million tonnes of rolled steel (101% of the figure seen a year ago, taking into account operations of facilities on the government uncontrolled areas in January-February 2017, or 103% without them). Some 13.21 million tonnes (78.4%) was exported. The share of exports a year ago was 79.7% (13.35 million tonnes with total production of 16.74 million tonnes).
The share of semi-fabricated products of exports in January-November 2018 was 43.68% (42.25% a year ago). The share of flat rolled steel of total exports was 34.85% (34.11%), and the share of long rolled steel was 21.47% (23.64%).
The main export markets of Ukrainian metal products over the period, according to state-owned enterprise Information-Analytic Agency (StateAnalitInform), are the countries of the European Union (34%), Africa (16.6%), other European countries, including Turkey (13.1%) and the Middle East (10.7%).
Among the metallurgical importers in January-November 2018, the CIS countries (52.7%) are on the first position, on the second are the countries of Asia (20.5%), and on the third – the EU (17.7%).

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Ukrainian metallurgical enterprises intend to increase steel production by 5.6% in September 2018 in comparison with the planned figures for August, to 1.9 million tonnes from 1.8 million tonnes.
According to information from the Ukrmetalurgprom association, the plan for September also envisages the increase in total rolled steel production by 6.3%, to 1.7 million tonnes from 1.6 million tonnes, pig iron by 5.6%, to 1.9 million tonnes from 1.8 million tonnes.
According to the union, in July cast iron production stood at 1.77 million tonnes (108% from June 2018), that of steel some 1.82 million tonnes (106%), and rolled goods some 1.5 million tonnes (99%).
Ukraine in January-July 2018 produced iron ore concentrate in the amount of 35.28 million tonnes (99.7% against the same period in 2017), sinter some 18.13 million tonnes (106%), pellets some 12.55 million tonnes (110%), gross coke (6% moisture) some 6.31 million tonnes (106%), pig iron some 11.9 million tonnes (109% taking into account the work of enterprises in the uncontrolled area in January-February 2017, 114% excluding them), steel some 12.2 million tonnes (103% and 106% respectively), rolled products some 10.75 million tonnes (105% and 110% respectively), and pipes some 647,000 tonnes (108%).
The report says despite the loss of part of the capacity in the uncontrolled territory, in 2018 compared to the same period in 2017 there was an increase in production of the main types of goods.
“This became possible due to the stabilization of providing the enterprises with iron ore and coke, as well as the commissioning of blast furnace No. 3 at Zaporizhstal after reconstruction,” the report reads.