Exports of slabs and billets fell by 9.8% m/m and by 85.4% y/y

In October 2022, Ukrainian steel enterprises reduced the export of semi-finished products by 9.8% compared to the previous month – to 69 thousand tons. In October 2022, enterprises’ revenue from exports decreased by 14.9% m/m – to $39.33 million. This is evidenced by State Customs Service’s data.

On an annual basis, shipments of semi-finished products abroad in October 2022 decreased by 85.4% in physical terms and by 87.6% in monetary terms.

In January-October 2022, the export of semi-finished products amounted to 1.73 million tons, which is 70.3% less than in the same period last year. In monetary terms, the export of semi-finished products for 10 months of 2022 decreased by 68.8% y/y – to $1.09 billion.

The main importers of semi-finished products from Ukraine for 10 months of 2022 were Bulgaria (23.89% of supplies in monetary terms), Italy (13.13%) and Poland (12.68%).

Export of semi-finished products from Ukraine in 2022 GMK Center

In October 2022 Ukrainian steelmakers increased the production of rolled products by 14% compared to September – to 289 thousand tons. Pig iron production in October 2022 increased by 12.6% m/m – up to 349 thousand tons, and steel output  decreased by 6.4% m/m – to 318 thousand 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 Russian invasion of Ukraine at the end of February 2022, Europe became the only market for Ukrainian products. At the same time, it is difficult and expensive to deliver goods by rail. The costs of steelmakers for the shipment of rolled steel to customers increased at least by 2 times, and the demand for products fell due to unfavorable market conditions.

As GMK Center reported earlier, in 2021 export of semi-finished products from Ukraine decreased by 9.5% compared to 2020 – to 6.8 million tons. In monetary terms, the export of semi-finished products over the past year increased by 48.8% y/y – up to $4.1 billion. The main importers of Ukrainian semi-finished products in 2021 were Italy (30.9%), Turkiye (12.8%) and the Dominican Republic (8%).