Ukraine increased imports of flat rolled products by 42.9% m/m in August

In August 2023, Ukraine increased imports of flat products by 42.9% compared to the previous month – up to 104.91 thousand tons. Import costs in August increased by 29.8% m/m – up to $117.43 million. This is evidenced by State Customs Service’s data.

Compared to August 2022, in August 2023, Ukraine increased the costs of importing flat rolled products by 62.8%. Import volumes increased by 2.3 times.

In January-August 2023, Ukraine consumed 568.64 thousand tons of imported flat rolled products worth $671.67 million. The costs of importing foreign products increased by 80.1% compared to the same period last year, and the volume of deliveries – by 2.6 times.

In January-August 2023, Ukraine imported the most coated flat rolled products with a width of 600 mm and more (HS 7210) – 295.4 thousand tons for $354.7 million. In August, the import of such products increased by 60.3% m/m – up to 64.4 thousand tons, and purchase costs amounted to $72.14 million (+47.3% m/m).

Also, 176.5 thousand tons of hot-rolled uncoated flat rolled products with a width of 600 mm and more (HS 7208) were imported for $159.4 million, and in August – 23.1 thousand tons (+22.5% m/m) for $19.12 million (+4.4% m/m).

The top three among the types of flat rolled products in terms of import volumes to Ukraine in January-August 2023 – cold-rolled flat products made of carbon steel without a coating with a width of 600 mm and more (HS 7209) – 46.89 thousand tons for $42.79 million. In August, deliveries of such products to Ukraine increased by 39.1% compared to the previous month – up to 9.54 thousand tons, and in monetary terms – by 39.9% m/m, up to $8.65 million.

China, Turkiye and Poland were the largest suppliers of coated flat rolled products with a width of 600 mm and more in January-July 2023 – 28.9%, 20.8% and 16.9%, respectively, in monetary terms. Turkiye (44.7%), Slovakia (18.4%) and Romania (13.8%) shipped more than 70% of uncoated hot-rolled flat products 600 mm wide and larger. Turkiye (58.7%) was the main supplier of uncoated cold-rolled flat products in January-August 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 effect 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.