Ukrainian consumers' spending on imports of long products decreased by 36.8% m/m

In July 2023, Ukraine reduced imports of long products by 34.1% compared to June 2023, to 16.4 thousand tons. Import costs for the month decreased by 36.8% m/m – up to $15.54 million. This is evidenced by the data State Customs Service.

Compared to July 2022, in July 2023, Ukraine increased the cost of importing long products by 7.7%. Import volumes increased by 12.6%.

According to the results of January-July 2023, Ukraine consumed 105.03 thousand tons of imported long products worth $109.5 million. The cost of importing foreign products increased by 17% compared to the same period last year, and the volume of deliveries – by 22.9%.

Most of all, in January-July 2023, squares, shaped and special profiles made of unalloyed steel (UKTVED – 7216) were imported to Ukraine – 37.5 thousand tons for $33.2 million. In July, 3.94 thousand tons were delivered (- 53.5% m/m) by $3.67 million (-48.8% m/m). Also imported other twisted bars without further processing (UKTVED – 7214) 42.1 thousand tons for $32.91 million, in July – 8.55 thousand tons (-18.5% mom) for $32.91 mln (-25.7% m/m).

In third place in terms of supplies to Ukraine among types of long products are other bars and bars from alloyed steels, hollow bars and bars for drilling from alloyed or non-alloyed steels (UKTVED – 7228) – 10.5 thousand tons for $17.24 million. In July, deliveries of such products to Ukraine fell by 50.6% compared to the previous month – to 1.1 thousand tons, and in monetary terms – by 55.4% m/m. – up to $1.86 million.

Turkey is the largest supplier of squares, shaped and special profiles made of unalloyed steel – 62.9% in monetary terms. Among the main exporters of other bars and twisted bars without further processing, Turkey and Bulgaria account for 65.8% and 25.8%, respectively. Germany (52.7%) and Turkey (18.3%) shipped more than 70% of other alloy steel bars and rods, alloyed or non-alloy steel hollow bars and bars for drilling.

As the GMK Center analyst Andriy Glushchenko predicted earlier, in the long term the import of rolled steel will increase, especially during post-war reconstruction. Imported supplies will become the main source for meeting domestic demand. In the short term, it can be expected that the volume of imports will stabilize at a certain level that will take into account the existing logistical constraints in the conditions of war.

As GMK Center reported earlier, in 2022, Ukraine reduced the import of long rolled steel by 70.5% compared to 2021 – to 96.06 thousand tons. Import costs for the year decreased by 60.6% y/y – to $113.65 million.

Export of long rolled steel from Ukraine in 2022 amounted to 748.95 thousand tons, which is 59.7% less than in 2021. In monetary terms, deliveries of such products fell by 54.3% m/m – to $23.84 million.