In June, the volume of flat rolled products shipments increased by 5.6% m/m

In January-June 2023, steel enterprises of Ukraine reduced the export of flat products by 68% compared to the same period in 2022 – to 422.5 thousand tons. Revenue from exports for the first half of 2023 decreased by 72.4% y/y – to $308.3 million. This is evidenced by State Customs Service’s data.

In June 2023, steel enterprises of Ukraine increased the export of flat products by 5.6% compared to May 2023 – up to 122.93 thousand tons. In monetary terms, the export of such products increased by 5.9% m/m – up to $94.23 million.

In 6 months, the most exported flat hot-rolled products without coating (Nomenclature 7208) – 312.3 thousand tons for $219.3 million. In June, 89.1 thousand tons (-5.3% m/m) were shipped for $65.4 million (-6.4% m/m). Also, 89.6 thousand tons of flat cold-rolled products without coating (Nomenclature 7209) for $61.9 million were exported, in June – 24.3 thousand tons (+24.1% m/m) for $18 million (+17 .8% m/m).

The three leaders among the types of flat rolled products in terms of export volumes from Ukraine in January-June 2023 are covered by flat clad rolled products, with galvanic or other coating (Nomenclature 7210) – 20.13 thousand tons for $26.24 million. In June, steel companies increased exports of such products by 3.7 times compared to the previous month – up to 9.46 thousand tons. Revenue from its shipment increased by 3.1 times m/m – up to $10.8 million.

Poland and Bulgaria are the largest consumers of Ukrainian flat hot-rolled rolled steel without coating – 57.2% and 13.9%, respectively, in monetary terms. Poland (33.4%), Bulgaria (13.9%) and Portugal (10.4%) together consumed about 60% of uncoated flat cold-rolled products. Poland (65.4%) and Romania (27.4%) are among the main buyers of Ukrainian-made rolled steel.

In June 2023, steel enterprises of Ukraine reduced the production of rolled products by 16.4% compared to the previous month – to 393 thousand tons. In January-June 2023, Ukrainian steelmakers produced 2.37 million tons of rolled products, which is 41 % less y/y.

Rolled steel production probably fell due to the Russian troops blowing up the Kakhovka hydroelectric power station (HPP) on June 6, 2023, which caused problems with water supply to iron and steel enterprises in the Dnipropetrovsk region. The most threat is over steel facilities in Kryvyi Rih.

Thus, ArcelorMittal Kryvyi Rih suspended production of steel and rolled production to reduce water consumption in critical conditions. Only blast furnace and coke-chemical production, as well as the Mining, will remain in operation. At the same time, the enterprises of Metinvest are working regularly, the situation there is under control.

As GMK Center reported earlier, in 2022, Ukrainian steelmakers exported 1.63 million tons of flat rolled steel, which is 73% less compared to 2021. The revenue of steelmakers from the export of such products fell by 73.5% y/y – to $1.35 billion. The largest consumers of products were Poland, Romania, Turkiye and Bulgaria.