Ukraine reduced the import of long products by 12.9% m/m in May

Ukrainian consumers' spending on the import of long-rolled goods decreased by 8.8% m/m

In May 2023, Ukraine reduced the import of long rolled products by 12.9% compared to April 2023 – to 14.3 thousand tons. Import costs for the month decreased by 8.8% m/m – to $15 million. This is evidenced by State Customs Service’s data.

Compared to May 2022, in May 2023, Ukraine increased the costs of importing long rolled products by 7.2 times. Import volumes increased by 3.6 times.

In January-May 2023, Ukraine consumed 63.72 thousand tons of imported long rolled products worth $69.37 million. The costs of importing foreign products increased by 4.6% compared to the same period last year, and the volume of deliveries – by 2. 1%

In January-May 2023, the largest amount of angles, shaped and special profiles made of non-alloy steel (Nomenclature – 7216) was imported to Ukraine – 25.15 thousand tons for $22.3 million. In May, 6 thousand tons were delivered (+13.3% m/m) for $5.24 million (+12.3% m/m). Other 23 thousand tons of twisted bars without further processing (Nomenclature – 7214) for $18.8 million were imported, in May – 4.93 thousand tons (-42.2% m/m) for $3.95 million (-42.3% m/m).

In the third place in terms of the volume of supplies to Ukraine among types of long rolled products are other bars made of alloy steels, hollow bars and bars for drilling made of alloyed or non-alloyed steels (Nomenclature – 7228) – 7.14 thousand tons for $11.22 million. In May, deliveries of such products to Ukraine increased by 51.3% compared to the previous month – up to 1.7 thousand tons, and in monetary terms – by 52.7% m/m – up to $2.57 million.

The largest suppliers of angles, shaped and special profiles made of non-alloy steel are Turkiye – 62.6% in monetary terms. Among the main exporters of other twisted bars  and rods without further processing are Turkiye and Bulgaria – 61.2% and 30%, respectively. Germany (59.4%) and Turkiye (17%) shipped more than 70% of other alloy steel bars and rods, hollow bars and drill bars of alloy or non-alloy steels.

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.