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Rolled steel market in Ukraine expands by 11% in 2018

Ukrainian enterprises in January-May 2018 boosted rolled steel consumption by 10.9% year-over-year, to 1.842 million tonnes (1.661 million tonnes in January-May 2017). In January-May 2018, some 545,800 tonnes of rolled products were imported, which was 29.6% of domestic consumption, the Ukrmetprom Association has said.

In the same period of 2017, imports of rolled steel totaled 453,000 tonnes (27.3%). “Thus, the share of the import component grew by 20.5% in the five months of 2018 amid an increase in the consumption of rolled metal in the domestic market by 10.9% compared to January-May 2017,” the association said in a press release.

Bars and rods are still prevalent the structure of the imports in the five months compared to flat-rolled products in contrast to the same period in 2017: the share of flat-rolled goods in January-May-2017 was 61.8% versus 47.2% the same period of 2018, while the share of bars and rods was 37% and 49.6%, respectively.

“First and foremost, this is due to the loss of PJSC Yenakiyeve Metallurgical Plant [in Russian-occupied Donbas], and the deficit is offset by imports,” the press release said. Ukrainian metal companies produced 7.72 million tonnes of rolled metal in the five months of 2018 (105% compared to the same period in 2017, taking into account production in occupied Donbas in January-February-2017, or 111% without taking that territory into account), Ukrmetprom said. Of the output, about 6.43 million tonnes, or 83.2%, was exported, according to the State enterprise Information-Analytic Agency (StateAnalitInform). This roughly corresponds to the same period in 2017, when the share of exports was 83.6% (6.17 million tonnes with total rolled metal production being 7.39 million tonnes).

The share of semi-finished products in export shipments was 42.2%, which also corresponds to the period January-May 2017 (42.1%). The share of flat products (34% and 33.4%, respectively) and bars and rods (23.8% and 24.5%, respectively) are comparable with the same period of 2017.

The main export markets for Ukrainian steel products in January-May 2018, according to StateAnalitInform, were the countries of the European Union (34.8%), Africa (15.8%), other European countries, including Turkey (13.1% ), as well as countries in the Middle East (11.4%).

The main importers of metal products in the five months of 2018 were the CIS (59.6%), Asia (19.1%) and the EU’s 28 member states (15.9%).

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