FERROUS METALS


FERROUS METALS

FERROUS METALS

Metal Markets Dept. With the Ukrainian National Research
and Information Center for Monitoring International Commodity Markets possesses
information by the results of foreign and interior trade in Ukraine’s mining and
metallurgical commodities in 2000 and 5 months of 2001

According to Metallurgprom, in the 4 months of 2001,
Ukraine manufactured 8,750 ths. tons of pig iron, 10,936 ths. tons of steel and 9,648 ths.
tons of reday rolled metal. Production of pig iron (+5%), steel (+11%) and rolled steel
(+14%) increased as compared to respective period of 2000 (see Table 1).

EXPORT

In January-April 2001, Ukrainian supplies of metal products
mostly correspond to last year’s figures – in the period under review, Ukraine
exported some 9,509 ths. tons of metal products worth some USD 1,562 mln. This exceeds
respective figures of 2000 by 1.85% in terms of physical volume and by 1.02% in terms of
currency earnings.

Semis traditionally lead in export (mainly, billets and
slabs).Despite some decrease in export of these metal products, supplies are still low –
2,906 ths. tons (against 3,185 ths. tons in 2000). Percentage of this rolled metal in
total Ukrainian export of metals is at 30.5%.

Supplies of raw materials (steel scrap, pig iron, and
ferroalloys) keep notable – 22.3%, or 2,121 ths. tons. It is worth mentioning that steel
scrap supplies added 11% in the period under review, while export of pig iron nearly
halved.

In the period under review Ukraine exported some 2,141 ths.
tons of flat metal. Despite unfavorable global conjuncture for flat metal, Ukrainian
suppliers managed to retain tital export of this metal product at last year’s level
(with slight decrease by 0.5%). Supplies of zinked flat metal nearly doubled, while export
of CR flat metal lost 10%.

In January-April 2001, supplies pf long rolled metal
climbed by 22% (rebars and wire rod). In total, in the period under review Ukraine
exported some 1,701 ths. tons of long rolled metal against 1,390 ths. tons last year. This
became possible at the expense of increased export of rebars (+40%), while supplies of
wire rod narrowed by 8%.

Data on export of metal products from Ukraine in the 4
months of 2000 and 2001 are given in Table 2.

Regional distribution

By-region distribution of Ukraine’s export of metal
products in January-April 2001 was as follows.

In the period under review, S.E. Asian countries
traditionally held the leadership in import of Ukrainian metal products – 31.2%, or
2,970 ths. tons. Compared to last year, supplies to this region added 9.5%. this occurred
due to expanded export of semis (+16% to 1,695 ths. tons) and HR flat metal (+ 2.7% to 641
ths. tons), as well as steel scrap (+15% to 304 ths. tons).

Middle East countries firmly rank second – in the period
under review supplies to this region accounted for 2,665 against 2,303 ths. tons last year
(+15%). The most popular commodities in supplies to this market were: steel scrap (29% or
790 ths. tons), HR flat metal (16.5% or 440 ths. tons), as well as semis (14.5% or 390
ths. tons).

A 53.9% increase (up to 908 ths. tons) throughout the 4
months of 2001 provided CIS the third rank in Ukrainian export of metal products. What is
more, virtually all the commodities saw the increase in supplies. Supplies of bars (158
ths. tons), HR flat metal (144 ths. tons), steel scrap (140 ths. tons), and rebars (132
ths. tons) were the biggest.

EU countries hold steady 8.8% in total Ukrainian export of
metal products. In the period under review, EU countries consumed some 836 ths. tons of
Ukrainian metal products worth USD 136 mln. Physical supplies increased by 10%, while
currency earnings added 2%. Besides, Western European market remains the biggest importer
of Ukrainian raw materials, with 41% of semis (346 ths. tons), 20% of steel scrap (167
ths. tons), and 18% of pig iron (150 ths. tons).

Generaldata on by-region distribution of Ukraine’s export
of metalk products is given in Table 3.

Let us overview some major markets of Ukrainian suppliers
in detail.

USA

Ukrainian exporters vurtually lost their presence on the US
market. In January-April, export to this market narrowed by over 80%, having reached the
level of 160 ths. tons. Thus, Ukraine made just low supplies of wire rod (some 61 ths.
tons), pig iron (some 43 ths. tons), semis (some 25 ths. tons), as well as HR flat metal
(13 ths. tons).

China

China is the biggest importer of Ukrainian-made metal
products. Compared to the 4 months of 2000, in the respective 2001’ period under review
export supplies to Chinese markets increased by 16% to 1,189 ths. tons. Semis supplies
accounted for 805 ths. tons, HR flat metal – 206 ths. tons, and supplies of CR flat
metal – 163 ths. tons. There was no supply of rebars, wire rod or rebars.

Turkey

Like in previous months, Turkey remains traditional
importer of Ukrainian steel scrap and HR flat metal. The portion of these commodities in
total Ukrainian export to this country respectively makes 66% (693 ths. tons) and 14.5%
(151 ths. tons). On the whole, Ukraine shipped some 1,038 ths. tons to this market, which
is 23% down from last year’s figure.

Russia

Strong demand for metal products on this market contributed
to the increase in export supplies from Ukriane. In the 4 months, statistical data
reported a 70% increase in physical volume (up to 647 ths. tons), while currency earnings
soared by 60% (to USD 196.6 mln). The main commodities supplied to this market were bars
(22% or 143 ths. tons), HR flat metal (20% or 129 ths. tona), as well as rebars (15.6% or
101 ths. tons).

Prices

Compared to 4 months of 2000, in the period under review,
prices for metal products exported from Ukraine underwent some changes.

In January-April 2001, the prices dfor the following
commodities moved up: rebars (+4.6%), semis (+2.2%), bars (+1%), as well as rolled alloy
steel (+36.9%).

Besides, in the period inder review, prices for rolled
metals lowered: HR flat metal (-19.6%), CR flat metal (-14.8%), other rolled metals
(-25.1%) (mainle, zinced rolled metal).

Analogous situation has developed with the prices for steel
scrap and pig iron. Due to unfavorabe conjuncture on external markets, prices for scrap
and pig iron also lowered (by 7.3% and 9.5% respectively).

Average export prices for Ukrainian metal products in Q1
2000, 2001 are given in Table 4.

IMPORT

Statistical data for the first quarter of 2001 witnesses
that Ukrainian import accounted for some 161 ths. tons of metal products worth USD 76 mln.

Import supplies predominantly comprised metal products
manufactured in low amounts or not manufactured in Ukraine. Besides, some 20% of imported
products were shipped under tolling schemes. Th mein import commodities semis, mainy round
billets (28.5% or 46 ths. tons), rolled alloy steel (17.9% or 29 ths. tons), as well as
various ferroalloys (7.1% or 11.4 ths. tons).

Special attention should be paid to coated flat metal.
Ukraine experiences shortage oof this product – with a strong demand available, only one
domestic metallurgical works (OJSC Illyicha MW) manufactured zinced flat metal, mainly for
export. In the period under review, Ukraine imported some около 16.6 ths, tons of
coated flat metal, which makes 10% in total Ukrainian import of metal products.

The biggest importrs of metal products to Ukraine were as
follows: RF (52.2% or 84 ths. tons), Belarus (8.8% or 14.3 ths. tons), Latvia (7.3% or 12
ths. tons), Austria (6% or 9.8 ths.tons), as well as Germany (4.2% or 6.9 ths. tons).

The biggest suppliers of metal products to Ukraine are
presented in Table 5.

EXPORT 2000

(statistical analysis, cont.)

Wire rod

Ukrainian wire rod is one of a few metal products, which
enjoy stable demand on the global market.

In Q1 and Q2 2000, export supplies of wire rod were
limeted, with steady increase in price. The high in export supplies was registered in Q3.
Increase in prices on the world markets contributed to this. However, in Q4 the situation
radically changed, export supplies narrowed and prices plunged.

Dynamics of the Ukrainian export and export prices for HR
coils is given at Figure 1 and in Table 6.

Like most types of liquid Ukrainian rolled metal, export of
wire rod was made directly by producers: Krivirozhstal (57% or 972.6 ths. tons), Makeevka
MW (16% or 275 ths. tons), and Yenakievo MW (11% or 192 ths. tons).

In 2000, Bulgaria (19%), USA (16%), Algeria (8%), China
(6%), and Syria (4%) were the biggest importers.

Carbon steel rebars

For a few years running, global market for carbon steel
rebars has been extremely unstable, mainly, from price and conjuncture viewpoint. Anuhow,
Ukrainian export supplie accounted for 2,593 ths. tons (9% in total export of metal
products).

In the first quarter, export prices were low, which to an
extent can explained by seasonal decline in business activity (winter holidays etc.) on
the world markets. However, in th esecond quarter, the prices moved up, though on the
whole supplies were steady. Further export supplies of rebars increased, despite the
general weakening of global conjunture, which subsequently resulted in decrease of prices.

Dynamics of the Ukrainia export and export prices for
carbon steel rebars is given at Figure 2 and in Table 7.

Export supplies were mainly made by Krivorozhstal – 88%
or 2,277 ths. tons, as well as numerous commercial companies, with maximal total volume of
40-42 ths. tons.

In the period under review, the main market for carbon
steel rebars were Algeria (22%), Suria (15%), Bulgaria (13%), Iraque (11%), RF (6%) and
others.

Alloy (manganese) steel rebars

Ukrainian export of alloy steel rebars was absolutely
different (35GS rebars were mainly shipped). Though supplies of these metal products
fluctuated, there was firm upward trend in prices. Decrease in prices occurred only in the
end of the year.

Dynamics of the Ukrainian export and export prices for
alloy steel rebars is given at Figure 3 and in Table 8.

The biggest importers of this product were RF (35%), Iran
(18%), China (14%), as well as Bulgaria (8%) and Yugoslavia (6%).

In 2000, the biggest exporters of this metal product were
Yenakievo MW (74% or 197 ths. tons), Krivorozhstal (7% or 19.5 ths. tons), and Makeevka MW
(4% or 11.05 ths. tons).

Alexander SHEYKO, expert with DerzhZovnishInform

Table 1. Ukraine’s production of pig iron, steel
and rolled steel in the 4 months of 2000 and 2001, ths. tona

Product 4 months of 2000 4 months of 2001 2001/2000 ratio, %
Pig iron

6,266

6,551

+5
Steel

9,876

10,936

+11

Table 2. Export of metal products from Ukraine

Commodity Jan-Apr 2000, ths. tons Jan-Apr 2001, ths. tons Percentage, % 2001/2000 ratio, %
Long rolled products

1,390

1,701

17.89

122.37

Bars

185

320

3.37

172.97

Flat metal

2,152

2141

22.52

99.49

Semis

3,185

2,906

30.56

91.24

Raw materials

2,149

2,121

22.31

98.70

Rolled alloy steel

150

143

1.50

95.33

Other metal products

63

50

0.53

79.37

TOTAL

9,336

9,509

100.00

101.85

Table 3. By-region distribution of Ukrainian export

Commodity Jan-Apr 2000, ths. tons Jan-Apr 2001, ths. tons Percentage, % 2001/2000 ratio, %
S.E.A

2,712

2,970

31.24

109.54

Midle East

2,303

2,665

28.02

115.72

CIS

590

908

9.54

153.96

EU

760

836

8.80

110.09

Eastern and Central Europe

1,026

805

8.47

78.43

Other

1,946

1,325

13.94

68.12

Total

9,336

9,509

100.00

101.86

Table 4. Average export prices for Ukrainian metal
products, USD/MT

Commodity Средние экспортные
цены
 
Q1 2000 Q1 2001. Change (+/-), %
Rebars

189.08

198.11

4.6

HR flat metal

189.55

158.53

-19.6

Wire rod

179.21

177.98

-0.7

Ferrous scrap metal

76.7

71.49

-7.3

Semis

143.72

147.02

2.2

Rolled alloy steel

259.29

410.88

36.9

Other metal products

261.29

331.71

21.2

Other flkat metal

336.07

268.55

-25.1

Rebars

186.1

188.05

1.0

Ferroalloys

420.65

411.44

-2.2

HR flat meta

252.52

220.01

-14.8

Pig iron

111.63

101.95

-9.5

Table 5. Biggest suppliers of metal products to
Ukraine

Country 2000 Country 3 months of 2001
тыс. т % ‘000 tons %
RF

205.31

44.9

RF

84.20

52.2

Austria

38.39

8.3

Austria

14.30

8.8

Latvia

34.81

7.6

Latvia

11.91

7.3

Belarus

34.04

7.4

Belarus

9.85

6.1

Germany

23.56

5.1

Germany

6.91

4.2

Other countries

119.26

26.7

Other countries

34.06

21.4

TOTAL

455.39

100

TOTAL

161.25

100

Table 6. Average export prices for Ukrainian steel
wire rod in 2000, USD/MT

Supply basis Average price
CPT Ukrainian ports 168
DAF Ukrainian frontier 173
FCA Ukrainian ports 183
FOB Ukrainian ports 184

Table 7. Average export prices for Ukrainian rebars
of carbon steel in 2000, USD/MT

Supply basis Average price
CPT Ukrainian ports 189
DAF Ukrainian frontier 274
FCA Ukrainian ports 173
FOB Ukrainian ports 240

Table 8. Average export prices for Ukrainian rebars
of alloy (manganese) steel in 2000, USD/MT

Supply basis Average price
CPT Ukrainian ports 208
DAF Ukrainian frontier 185
FCA Ukrainian ports 160
FOB Ukrainian ports 141

Table 9. Global prices for billets, USD/MT

Date CIS, FOB, Black Sea port, export China, C&F, import EU to the third countries, FOB, export Turkey, FOB, export Brazil, FOB, export
01.12.2000 150-160 170-180 170-180 180-200 170-190
01.01.2001 150-165 175-181 170-180 170-175 170-190
01.02.2001 145-160 177-182 170-180 160-170 160-180
01.03.2001 150-160 177-182 170-180 160-170 160-180
01.04.2001 152-160 178-190 170-180 163-190 160-180
01.05.2001 155-160 178-190 170-180 163-190 160-180
23.05.2001 155-160 180-190 170-180 165-175 160-180

Table 10. Global prices for rebars, USD/MT

Date CIS, FOB, Black Sea port, export China, C&F, import EU to the third countries, FOB, export Brazil, FOB, export USA, CIF, Gulf Port, import Turkey, FOB, export
01.12.2000 170-190 Nom 220-240 195-220 200-210 210-220
01.01.2001 170-190 Nom 220-240 190-200 195-200 210-220
01.02.2001 170-190 Nom 220-240 190-200 220-240 205-210
01.03.2001 185-195 Nom 220-240 190-200 230-250 205-210
01.04.2001 185-195 Nom 220-240 195-220 260-270 205-210
01.05.2001 185-195 Nom 220-240 195-220 260-270 205-210
22.05.2001 185-195 Nom 220-240 210-225 255-265 200-210

Table 11. Global prices for wire rod, USD/MT

Date CIS, FOB, Black Sea port, export China, C&F, import EU to the third countries, FOB, export Brazil, FOB, export USA, CIF, Gulf Port, import Turkey, FOB, export
01.12.2000 175-200 Nom 190-200 200-235 240-260 210-220
01.01.2001 170-200 Nom 190-200 210-230 250-260 210-225
01.02.2001 170-200 Nom 190-195 215-230 250-260 205-215
01.03.2001 175-200 Nom 180-195 215-230 250-260 205-215
01.04.2001 175-197 Nom 180-195 215-230 250-260 205-215
01.05.2001 175-197 Nom 180-195 215-230 250-260 205-215
22.05.2001 175-197 Nom 180-195 195-220 270-290 205-215

Table 12. Global prices for HR thick plates, USD/MT

Date CIS, FOB, Black Sea port, export EU to the third countries, FOB, export Brazil, FOB, export USA, CIF, Gulf Port
01.01.2000 180-190 350-370 300 385-405
01.06.2000 205-220 350-370 320 275-390
01.09.2000 190-205 350-370 320 365
01.12.2000 190-205 350-385 290-300 340-350
01.01.2001 190-205 290-310 290-300 340-350
01.02.2001 185-195 290-310 290-300 320-340nom
01.03.2001 175-205 290-310 290-300 320-340nom
01.04.2001 175-205 290-310 290-300 320-340nom
01.05.2001 175-205 290-310 290-300 320-340nom

Table 13. Global prices for HR coils, USD/MT

Date CIS, FOB, Black Sea port, export China, C&F, import EU to the third countries, FOB, export Brazil, FOB, export USA, CIF, Gulf Port, import Turkey, FOB, export
01.01.2000 195-220 240-280 270-300 240-250 330-350 330
01.06.2000 205-260 235-250 320-330 270-290 310-330 330
01.09.2000 180-185 235-250 285-310 270-290 265-285 265-270
01.12.2000 160-170 170-195 205-215 210-230 240-260 205-215
01.01.2001 155-170 170-195 190-220 210-230 230-260 205-215
01.02.2001 140-163 170-185 190-200 210-240 230-250 200-210
01.03.2001 140-163 170-185 190-200 210-240 230-250 200-210
01.04.2001 150-180 175-190 190-200 220-245 240-245 200-210
01.05.2001 160-170 175-195 200-230 220-245 240-245 200-210
22.05.2001 150-190 180-215 200-240 210-235 240-245 200-210

 

Figure 1. Dynamics of steel wire rod exports from
Ukraine in 2000

 

Figure 2. Dynamics of carbon steel rebars’ export
from Ukraine in 2000

 

Figure 3. Dynamics alloy (manganese) steel rebars’
export from Ukraine in 2000

 

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