In December, Ukrainian consumers received 58.45 thousand tons of flat rolled steel
In 2022, Ukraine reduced the import of flat rolled steel by 32.8% compared to 2021 – to 472.01 thousand tons. Import costs for the year decreased by 24.1% y/y – up to $698.83 million. This is evidenced by the State Customs Service’s data.
In December 2022, Ukrainian consumers received 58.45 thousand tons of flat rolled products from abroad, which is 18.03% more compared to December 2021, and 4.7% less month-on-month. At the end of the month, import costs totaled $69.05 million, down 12.1% year-on-year and by 9.8% – month-on-month.
In 2022, the largest amount of coated flat rolled products with a width of 600 mm and more (Nomenclature – 7210) was imported to Ukraine – 258.3 thousand tons (-46.6% y/y) for $377.9 million (-369% year/year). Also, 124.7 thousand tons (+67.7%) of uncoated hot-rolled flat rolled products with a width of 600 mm and more (Nomenclature – 7208) for $130.14 million (+99% y/y) was imported.
The three leaders among the types of flat products imported to Ukraine in 2022 are covered by cold-rolled flat products, uncoated, and with a width of 600 mm and more (Nomenclature code – 7209) – 29.08 thousand tons for $31.44 million. This is by 41, 5% and 39.6% less, respectively, compared to 2021.
In general, in 2022, import deliveries of long rolled products to Ukrainian consumers fell in almost all positions in real terms, except for hot-rolled uncoated flat products with a width of 600 mm and more (+67.7% y/y) and uncoated flat products with a width of less than 600 mm (+12.8% y/y).
Turkiye, China and Poland are the largest suppliers of coated flat rolled products with a width of 600 mm and more – 21.73%, 19.26% and 17.97%, respectively, in monetary terms. Slovakia (21.15%) and Turkiye (27.82%) shipped about 50% of uncoated hot-rolled flat products with a width of 600 mm and more. The main supplier of cold-rolled uncoated flat products with a width of 600 mm and more is Turkiye (40.02%).
As a result of the Russian invasion of Ukraine, several steel enterprises remained in the temporarily occupied territory, including the largest steel plants Azovstal and Ilyich Iron and Steel Works. Enterprises located in the territory under control are operating at minimum capacity due to problems with logistics, the unfavorable situation on the global steel markets, and interruptions in energy supply due to the shelling of the Ukrainian energy infrastructure by Russian forces.
The problems of Ukrainian steel industry in the near future may provoke an increase in the import of steel products to the domestic market.
As GMK Center reported earlier, in 2022, steel production in Ukraine amounted to 6.26 million tons, which is 70.7% less compared to 2021. Rolled steel production for the year decreased by 71.96% y/y – to 5.35 million tons, and pig iron smelting – by 69.8% y/y, to 6.39 million tons.
Export of flat rolled products from Ukraine in 2022 amounted to 1.63 million tons, which is 73% less than in 2021. In monetary terms, deliveries of such products fell by 73.5% m/m – to $1.35 billion. The largest export of uncoated flat hot-rolled products for the year was 1.3 million tons for $1 billion, which is 72.5% and 73% less, respectively, compared to 2021.