Flat rolled products import to Ukraine increased by 21.8% y/y in January-July i

In January-July 2024, Ukraine increased the import of flat rolled products by 21.8% compared to the same period in 2023 – up to 564.88 thousand tons. This is evidenced by the data of the State Customs Service.

The main volume of imports falls on coated flat products – 272.1 thousand tons (+17.8% y/y). The key supplier of products is Turkey – 104.87 thousand tons. Poland accounts for another 37.35 thousand tons.

194.26 thousand tons of flat hot-rolled products were also imported, which is 26.6% more compared to January-July 2023. Turkish suppliers shipped 130.71 thousand tons of relevant products to the Ukrainian market, Italian suppliers – 17.2 thousand tons. The top three types of flat products imported by Ukrainian consumers include cold-rolled flat products – 42.63 thousand tons (+14, 1% y/y). The largest volume was imported from Turkey – 231.52 thousand tons, and China – 6.83 thousand tons.

In July 2024, the import of flat rolled products to Ukraine increased by 5.1% compared to the previous month, and by 23.4% compared to July 2023 – up to 90.6 thousand tons.

Deliveries of coated flat products increased by 2.9% m/m and by 17.8% y/y – up to 47.37 thousand tons, flat hot-rolled products – increased by 41.1% m/m and 70% y/y, to 32.05 thousand tons, and cold-rolled flat products fell by 61.9% m/m and 44.7% y/y.

Expenditures on the import of flat rolled products for 7 months reached $622.86 million, which is 12.4% more compared to January-July 2023, and in July – $100.08 million (+4.8% m/m; +10.6% y/y).

The sharp increase in imports is connected with the destruction of the Mariupol steel plants, which specialized in the production of flat rolled products. In addition, there is the impact of a low base of comparison – in the first half of last year, economic activity was at a low level due to hostilities. Accordingly, import issues were not in the first place.

In the long term, imports of flat products are expected to increase, especially during post-war reconstruction. Imported supplies will become the main source for meeting domestic demand. In the short term, imports will stabilize at a certain level, given the existing logistical constraints in wartime conditions.

As GMK Center reported earlier, in 2023, Ukraine increased imports of flat steel products by 93.2% compared to 2022 – to 908.2 thousand tons. Import costs for the year increased by 48.4% y/y – up to $1.03 billion. The largest suppliers of products were Turkey, Romania, Slovakia and China.