News Industry semi-finished products 22 February 2023
The income of steelmakers from the export of slabs and billets for the month amounted to $29.89 million
In January 2023, Ukrainian steel enterprises reduced the export of semi-finished products by 49% compared to the previous month – to 38.34 thousand tons. The income of producers from exports in January 2023 decreased by 52.3% m/m – to $20.897 million. This is evidenced by State Customs Service’s data.
In January 2023, shipments of semi-finished steel products abroad decreased by 92.1% in physical terms and by 93% in monetary terms year-on-year.
The main importers of semi-finished products from Ukraine in January 2023 were Poland (57.25% of deliveries in monetary terms), Denmark (24.91%) and Italy (11.31%).
In January 2023, Ukrainian steelmakers increased the production of rolled products by 2.4 times compared to December 2022 – up to 257 thousand tons. Iron smelting for the month decreased by 2.4% m/m – to 240,000 tons, and steel production – increased by 2.7 times m/m, up to 284,000 tons.
The low production of Ukrainian steelmakers is connected with logistical problems, the unfavorable situation of the world market, as well as with the destruction due to hostilities of the two largest enterprises of Ukrainian iron and steel industry – Azovstal and Ilyich Iron and Steel Works of Mariupol.
After the invasion of Russia on the territory of Ukraine, domestic steel companies reduced the export of products to a minimum due to the blockade of sea ports. Steelmakers are looking for ways to ship their products through the railway infrastructure, but due to the influx of cargo, Ukrzaliznytsia and border crossings are unable to cope. In addition, this method of cargo delivery is unprofitable due to the two-fold increase in costs.
As GMK Center reported earlier, in 2022 export of semi-finished products from Ukraine decreased by 72% compared to 2021 – to 1.89 million tons. In monetary terms, the export of semi-finished products for the past year fell by 70.9% y/y – to $1.19 billion. The main importers of Ukrainian semi-finished products in 2022, there were Bulgaria (25.55%), Poland (13.97%) and Italy (12.13%).