Ukraine reduced imports of flat products by 11.9% m/m in September

The costs of Ukrainian consumers on the import of flat rolled products fell by 14.3% m/m

In September 2023, Ukraine reduced imports of flat products by 11.9% compared to the previous month – to 92.44 thousand tons. Import costs in September fell by 14.3% m/m – to $100.7 million. This is evidenced by State Customs Service’s data.

Compared to September 2022, in September 2023, Ukraine increased the costs of importing flat rolled products by 13.6%. Import volumes increased by 45.6%.

In January-September 2023, Ukraine consumed 661.1 thousand tons of imported flat rolled products worth $772.3 million. The costs of importing foreign products increased by 67.3% compared to the same period last year, and the volume of deliveries – by 2.3 times.

In January-September 2023, the largest amount of flat rolled products with a width of 600 mm and more (HS 7210) was imported to Ukraine – 331.7 thousand tons for $397.5 million. In September, the import of such products fell by 43.6% m/m – to 36.4 thousand tons, and purchase costs amounted to $42.8 million (-40.6% m/m).

220.1 thousand tons of uncoated hot-rolled flat products with a width of 600 mm and more (HS 7208) worth $195.2 million were also imported, and in September – 43.5 thousand tons (+88.5% m/m) for $35.8 million (+87.1% m/m).

In the top three among the types of flat rolled products in terms of import volumes to Ukraine in January-September 2023 – cold-rolled flat products made of carbon steel without a coating with a width of 600 mm and more (HS 7209) – 50.5 thousand tons for $46 million. In September, deliveries of such products to Ukraine fell by 62.1% compared to the previous month – to 3.6 thousand tons, and in monetary terms – by 62.3% m/m, to $3.26 million.

The largest suppliers of flat rolled products with a width of 600 mm and more in January-September 2023 were China, Turkiye and Poland – 27%, 21.5% and 17.1%, respectively, in monetary terms. Turkiye (43.7%), Slovakia (17.7%) and Romania (14.7%) shipped more than 70% of uncoated hot-rolled flat products with a width of 600 mm or more. Turkiye (57.8%) was the main supplier of uncoated cold-rolled flat products in January-September 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 – in the first half of last year, 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.