FERROUS METALS

UKRAINE

Production

According to the data with Metallurgprom association, in January 2001 Ukraine manufactured 2,220,000 tonnes of iron, 2,697,000 tonnes of steel, and 2,324,000 tonnes of rolled metal. Iron output is 13% up, steel output – 17% up and rolled metal – 18% up from the production figure in the respective period of 2000.

The data on production of iron, steel and rolled metal in January 2000 and 2001 are presented in table 1.

Table 1. Production of iron, steel and rolled metal in Ukraine (‘000 tonnes)

Exports

Over the first month of 2001, Ukraine exported some 2,242,000 tonnes of metal products worth USD 369,754,000. This exceeds the respective figures of January 2000 by 11% in terms of physical volume and by 14% in terms of export revenues.

Increase in physical exports sprang from expanded supplies of long rolled metal (rebars and wire rods) – up by 63% to 418,000 tonnes, semis (billets and slabs) – up by 5% to 715,000 tonnes, and raw materials (metal scrap and ferroalloys) – up by 5% to 469,000 tonnes.

Along with that, export supplies of flat rolled metal in January 2001 lowered by 4% to 511,000 tonnes due to unfavorable situation on the international market.

As compared to January 2000, export of bars increased considerably. In January 2001, Ukraine exported some 94,000 tonnes of this metal product (26,000 tonnes in January 2000).

Table 2 shows the data on Ukraine’s export of metal products in January 2000 and 2001.

Table 2. Export of metal products from Ukraine

REGIONAL PATTERN

According to the statistics, in the first month of 2001, the main sales markets for Ukrainian metal products (in terms of physical volume) were the following: Middle East (31% or 693,000 tonnes), Southeast Asia (28% or 637,000 tonnes), EU member-states (9% or 205,000 tonnes), CIS countries (8% or 173,000 tonnes), and East Europe (7% or 157,000 tonnes).

EUROPEAN UNION

In January 2001, export to this region increased as compared to January 2000. Some 205,000 tonnes (up by 29%) worth USD 30,850,000 (up by 21%) were supplied to the EU. The main export articles to this region were semis (93,000 tonnes or 45%), metal scrap (48,000 tonnes or 23%) and iron (33,000 tonnes or 16%). There were also registered small supplies of HR flat metal (up to 9,000 tonnes) and rebars (up to 2,000 tonnes).

USA

Over the fourth quarter of 2000, the situation on the US market became less favorable, which forced Ukrainian exporters of metal products to cut supplies to this market. In January 2001, Ukraine exported some 74,000 tonnes to the USA, which is 63% down from the respective figure in 2000. The main export articles to this market were wire rod (56% or 42,000 tonnes) and iron (36% or 27,000 tonnes).

China

Crisis on the Chinese market in 2000 and tough measures undertaken by the Chinese government in order to overcome it resulted in reduction in exports of Ukrainian metal products to this market. The tendencies of the year 2000 proved true for January 2001 as well: as compared to January 2000, export of metal products to the Chinese market decreased by 69% and totaled 92,000 tonnes. Some 55,000 tonnes of HR flat metal and 37,000 tonnes of CR flat metal were supplied to China in this period. No supplies of other metal products were registered.

Turkey

In the period under review, some 227,000 tonnes of Ukrainian metal products worth USD 32,287,000 were supplied to Turkey. This is less than was exported in January 2000 by 7% in terms of physical volume and by 15% in terms of export revenues. The main export articles to this market were metal scrap (51% or 143,000 tonnes), semis (20% or 57,000 tonnes) and HR flat metal (18% or 51,000 tonnes).

Russia

High demand on the Russian market in the year 2000 allowed Ukrainian exporters to strengthen their position on this market by boosting export. In January 2001 these tendencies retained – export grew by 53% as compared to January 2000. Some 101,000 tonnes of metal products were exported. Increase in physical exports was registered mainly due to increase in supplies of rebars (24,000 tonnes of the commodity were exported), bars (40,000 tonnes) and HR flat metal (16,000 tonnes).

The data on distribution of Ukraine’s exports of metal products by the regions of the world are shown in table 3.

Table 3. Distribution of Ukraine’s exports of metal products by the regions of the world

Ukrainian export in 2000 (statistical analysis, to be continued in the next issues of the magazine)

MARKET SITUATION

Iron (including cast iron)

Practically, all metallurgic enterprises of Ukraine produce iron. Solid raw material base and availability of the necessary technological equipment with relatively low manufacturing expenditures make production of this metal product attractive for the enterprises. Besides to that, high demand for the commodity on the international market stimulates its production and, consequently, exports.

Over the year 2000, Ukraine exported some 1,540,000 tonnes of iron, which is down by 18% from the respective figure of 1999 (some 1,882,000 tonnes). This was caused by the more favorable situation on the world market for rolled metal with higher VAT, solvency of commercial iron at Ukrainian producing enterprises, and reduction in prices for metal scrap as compared to that for iron.

Dynamics of Ukraine’s iron physical export and export prices is presented on figure 1.

Fig. 1. Dynamics of Ukraine’s iron physical exports and export prices

The main exporters of iron in 2000 were Ukrainian metallurgic enterprises themselves: Krivorozhstal (55%), Zaporozhstal (11%), Petrovsky ISW (9%), Ilyich ISW (6%) and Makeyevka ISW (6%).

There was high demand for Ukrainian iron on the following markets: USA (72% of the total exports of iron), Turkey (12%), Italy (10%), Mexico (2%) and Bulgaria (2%).

Ukrainian export prices for iron were the highest in the second and third quarters of 2000. High demand for this commodity on the world market for finished rolled metal stimulated the rise in prices for this metal product. However, by the end of the year, prices for Ukraine-produced iron decreased, which resulted in decrease of exports.

Average export price for Ukrainian iron depending on delivery terms is presented in table 4.

Table 4. Average export price for Ukrainian iron, USD/mt

Cast Iron

Cast iron is a semifinished item, which is used in foundry for casting manufacturing. Since Ukrainian foundry industry is experiencing the period of recession at present, demand for cast iron is quite low in the country. This is one of the reasons for reduction in output of the commodity at Ukrainian metallurgic enterprises, and for all the produce being exported from the country.

Dynamics of cast iron physical exports and export prices for the commodity in 2000 is shown on figure 2.

The main suppliers of the commodity were the following Ukrainian metallurgic enterprises: Constantinovka MW (52%), Petrovsky ISW (28%), Ilyich ISW (5%), Donetsk MW (3%), and Yenakievo ISW (2%).

In 2000, Ukraine exported its cast iron to the following markets: Turkey (36% of the total exports of the commodity), USA (22%), Bulgaria (19%), Italy (7%), and the Czech Republic (5%).

Fig. 2. Dynamics of cast iron physical exports and export prices in 2000

In April-July 2000, Ukraine’s export prices for cast iron reached their maximum. After that, there was registered reduction in prices caused by less favorable situation on the world markets for metal products.

Average export price for Ukrainian cast iron depending on delivery terms is presented in table 5.

Table 5. Average export price for Ukrainian cast iron, USD/mt