In June 2020, Ukrainian steelmaking companies increased exports of pig iron by 78.5% to 266.9 thousand tons against June last year. In monetary terms, pig iron exports grew by 46.9% to $70.4 million, according to the customs statistics.

Revenue from pig iron exports in June was 7% up from May, and increased by 10.2% in physical terms.

In H1, revenue of Ukrainian steelmaking companies from exports of pig iron grew by 8% to $422.3 million against H1 2019.

In January–June, steelmaking companies exported 1.5 million tons of pig iron, 22.8% up from January–June last year.

The main export market for Ukraine’s pig iron is the U.S. (55.99%). The share of the U.S. in the total exports of pig iron increased by 3.37 p.p. against January–May.

The share of China in the total exports of Ukrainian pig iron in January–June was 20.6%. In January–June 2019, Ukraine exported no pig iron to China. Turkey ranks third in terms of imports from Ukraine (7.72%).

This year, the Chinese market provided Ukrainian steelmakers with a good opportunity to increase their pig iron exports. The niche was formed due to a hike in iron ore prices amid falling supplies from Brazil. As a result, China started to ramp up imports of pig iron to substitute iron ore.

Nevertheless, iron ore prices in China have stabilized by late June due to a falling demand for steel. And in early July, quotations started to decrease amid growing shipments of raw materials. Iron ore producers currently expect a fall in prices for iron ore in H2. This should apparently be followed by a drop in pig iron quotations, which will decrease the economic attractiveness of exports to China.

As GMK Center reported earlier, in 2019, Ukraine’s exports of pig iron declined by 23.8% to $801.9 million compared to the previous year. Pig iron exports dropped by 14.2% in physical terms to 2.6 million tons.

In 2019, Ukraine sold more than a half of its pig iron to the U.S. (58%). Italy ranked second in terms of imports from Ukraine (12.43%), followed by Turkey (10.27%).

In June 2020, Ukrainian mining & metals companies increased exports of iron ore and iron ore concentrates by 45% to 4.3 million tons against June last year.

In monetary terms, iron ore exports in June grew by 23.8% to $353 million against May 2019,

according to the customs statistics.

Exports of iron ore and iron ore concentrates in June increased by 31.9% in monetary terms against May 2020. Exports of iron ore and iron ore concentrates increased by 24.7% in physical terms.

In Q2, Ukrainian mining & metals companies exported 12 million tons of iron ore worth $981.3 million, respectively, up from 6.8% and 11.3% in Q1.

In H1, Ukraine exported 23.1 million tons of iron ore, 16.8% up from H1 2019.

In January–June, revenue of Ukraine’s mining companies from exports of iron ore grew by 8.8% to $1.9 billion compared to the same period of the previous year.

China remains the main consumer of Ukrainian iron ore. Its share in Ukraine’s exports was 61.89% in H1. Poland ranked second (9.15%), followed by the Czech Republic (6.59%).

An increase in exports of Ukrainian iron ore in H1 was due to unfavorable prices in the Chinese market. In H1, iron ore prices in China have been growing due to recovery in demand for raw materials in the country following the lifting of the quarantine restrictions. As a result, a 29% hike was recorded in iron ore futures on the Dalian Commodity Exchange in June.

Besides, the market was affected by anxiety caused by interruptions in iron ore supplies from Brazil. The coronavirus pandemic in Brazil has led to a cut in production.

Nevertheless, ore prices in China have stabilized by late June due to a lower demand for steel. Conversely, in early July, prices started to fall amid growing supplies of raw materials. Iron ore producers currently expect a decrease in prices for iron ore in H2.

In 2019, iron ore exports grew by 8.1% in physical terms to 39.9 million tons and by 18.5% to $3.398 billion in monetary terms against 2018.

The key iron ore producers in Ukraine include: Sukha Balka GOK (Mining and Processing Plant), Zaporizhzhia Iron Ore Plant, Ingulets GOK, Kryvyi Rih Iron Ore Plant, Poltava Mining, Northern GOK, Central GOK, Southern GOK, ArcelorMittal Kryvyi Rih.

In H1, Ukrainian pipe companies reduced pipe production by 29.4% to 408 thousand tons compared to the same period a year earlier,

according to Interfax-Ukraine.

Member companies of Ukrtruboprom cut production of pipes by 35.9% to 272.1 thousand tons in H1.

In June, Ukraine produced 75.4 thousand tons of pipes, of which 48.9 thousand tons were made by Ukrtruboprom member companies.

In H1, production at Interpipe companies reduced as follows:

In January–June, Dniprovskiy Pipe Works produced 0.3 thousand tons of pipes against 13.6 thousand tons in the same period of the previous year. Centravis cut production by 14% to 9.8 thousand tons. Production of Trubostal shrank by 30.8% to 0.9 thousand tons of pipes.

In January–June, non-member companies of Ukrtruboprom showed the following results:

In 2019, Ukraine cut production of pipes by 9.1% to 1.002 million tons against the previous year.