Ukraine increased revenue from ferrous metal exports by 3.6% y/y in the first half of the year

In January-June 2024, Ukraine’s steel enterprises increased revenues from ferrous metal exports by 3.6% compared to the same period in 2023, to $1.46 billion. This is according to the State Customs Service, Interfax-Ukraine reports.

Ferrous metals accounted for 7.5% of total revenues from exports of goods during this period, compared to 7.3% in January-June 2023.

In June, revenue from exports of the respective products decreased by 4.9% compared to the previous month.

The upward trend in ferrous metal exports from Ukraine has been gradually slowing since the beginning of the year. In particular, in January, export revenues grew by 65% y/y, in January-February – by 46.3% y/y, in January-April – by 16.6% y/y, and in January-June it slowed to 3.6% y/y.

Exports of steel products are declining as domestic enterprises face a number of challenges, including the deterioration of the country’s energy system and the introduction of imports of at least 80% of electricity, a critical shortage of personnel due to mobilization and an imperfect reservation system, logistical problems and unfavorable conditions on the global steel market.

Continued pressure from these factors on the industry could lead to a decline in production and exports, and, accordingly, foreign exchange and tax revenues to the country’s budget.

At the same time, consumption of foreign steel products is increasing. Thus, in January-June this year, Ukraine increased imports of ferrous metals by 21.1% to $733.5 million. In June, the country imported products worth $131.08 million.

Exports of steel products fell by 5% to $477.1 million. In June, they were exported for $73.9 million. Imports of metal products for 6 months increased by 46.3% to $525.6 million. In June, these products were imported for $100.8 million.

As GMK Center reported earlier, in January-June 2024, Ukrainian steelmakers increased rolled steel production by 32.3% year-on-year – to 3.14 million tonnes, steel production by 36.9% – to 3.87 million tonnes, and pig iron production by 22.2% – to 3.47 million tonnes.