Ukrainian steelmakers increased pig iron export by 75.5% m/m in June

During the month, Ukrainian steel companies shipped 169.3 thousand tons of pig iron to foreign consumers

In June 2023, Ukrainian steel companies increased the export of pig iron by 75.5% compared to the previous month – up to 169.3 thousand tons. In monetary terms, pig iron deliveries abroad during this period increased by 60.1% m/m – up to $65.3 million. This is evidenced by State Customs Service’s data.

Compared to June 2022, in June 2023, the export of pig iron increased by 35.7% in physical terms, and decreased by 15.6% in monetary terms.

In January-June 2023, Ukraine exported 799.7 thousand tons of pig iron worth $309.15 million. Export volumes increased by 26.1% compared to the same period in 2022, and revenue decreased by 7.9%.

The main consumer of Ukrainian pig iron in January-June 2023 was Poland (66%). The share of Spain in the total volume of exports was 15.8%. The Czech Republic is in the third place with 8.1%. Before the war, more than half of the pig iron exported from Ukraine was consumed by the USA.

In June 2023, Ukrainian steelmakers reduced pig iron smelting by 19.4% compared to the previous month – to 486 thousand tons. Compared to June 2022, production increased by 40.9%. In January-June, 2.84 million tons of pig iron were produced (-37.5% y/y).

The low volumes of production of Ukrainian steelmakers are connected with logistical problems, the unfavorable situation of the world market, as well as with the destruction due to hostilities of the two largest steel enterprises of Ukraine – Azovstal and Ilyich Iron and Steel Works in Mariupol.

The only way to deliver Ukrainian pig iron abroad now is by rail. Due to the large influx of cargo, as the sea ports are blocked, Ukrainian Railways cannot process and transfer wagons with Ukrainian products to the European Union quickly and on time. In addition, logistics costs for the delivery of goods have increased at least by 2 times.

As GMK Center reported earlier, in 2022, Ukrainian steel companies reduced the export of pig iron by 59% compared to 2021 – to 1.32 million tons. The income of steelmakers from the export of pig iron last year amounted to $638.8 million, which is 61.1% less than in 2021. The main consumer of raw materials was the USA – 38.47% of the total volume of exports.