Rolled steel

The costs of Ukrainian consumers on the import of flat rolled products increased by 67% y/y

In July 2023, Ukraine increased its import of flat products by 2.4 times compared to the same period in 2022 – up to 73.5 thousand tons. Import costs in July increased by 67% y/y – up to $90.5 million. This is evidenced by the data State Customs Service.

Compared to June of the current year, in July Ukraine increased the costs of importing flat rolled products by 1.7%. Import volumes increased by 3.4%.

According to the results of January-July 2023, Ukraine consumed 464 thousand tons of imported flat rolled products worth $554.2 million. The costs of importing foreign products increased by 84.2% compared to the same period last year, and the volume of deliveries – by 2.7 times.

In January-July 2023, the largest amount of coated flat rolled products with a width of 600 mm and more (Nomenclature – 7210) was imported to Ukraine – 230.93 thousand tons for $282.5 million. In July, the import of such products increased by 3% m/m – up to 40.2 thousand tons, and purchase costs amounted to $49 million (+2.4% m/m).

Also, 153.4 thousand tons of hot-rolled uncoated flat rolled products with a width of 600 mm and more (Nomenclature – 7208) were imported for $140.3 million, and in July – 18.9 thousand tons (-17.5% m./m) to $18.32 million (-9.3% m/m).

In the top three among the types of flat rolled products in terms of import volume to Ukraine in January-July 2023 – cold-rolled flat products made of carbon steel without a coating with a width of 600 mm and more (Nomenclature –  7209) – 37.35 thousand tons for $34.14 million In July, deliveries of such products to Ukraine increased by 75.6% compared to the previous month – up to 6.86 thousand tons, and in monetary terms – by 60.7% m/m – up to $6.18 million.

China, Turkey and Poland were the largest suppliers of coated flat rolled products with a width of 600 mm and more in January-July 2023 – 26.1%, 20.5% and 17.7%, respectively, in monetary terms. Turkey (44.7%), Slovakia (17.2%) and Romania (14.6%) shipped more than 70% of uncoated hot-rolled flat products 600 mm wide and larger. Turkey (63%) was the main supplier of uncoated cold-rolled flat products in January-July 2023.

The 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 – last year in March-May 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 2022, Ukraine reduced imports 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 – to $698.83 million. The largest suppliers of products were Turkiye, Poland, Slovakia and China.