Ukrainian Market News 2008

Coke imports down by 30.6% to 92,700 tons in October
Coke exports down by 53.4% to 83,000 tons in October
Pig iron exports up by 23.1% to 101,500 tons in October
Exports of ferrous scrap metals up by 16% to 33,700 tons in October
28.11.2008 Source: Ukrainian News Agency

Measures taken to stabilize metallurgy and chemical complex
The Cabinet approved a package of measures aimed at stabilization of the situation in the mining and smelting and chemical complexes. In particular, it is envisaged in 2009 to apply a zero rate in determining tax obligations on collections in the form of a target charge to the functioning tariff on natural gas volumes. A moratorium for raising tariffs on transportation of cargos and prices for electric energy for enterprises of these sectors has been prolonged for next year. In addition, metallurgists and chemical workers will get natural gas on the condition of 20 percent advance payment, instead of 100 percent advanced payment as it was envisaged for all industrial enterprises.
20.11.2008 Source: Ukrinform

Ukraine's initiative on "voluntary self-restriction" in metal production and exports supported by China, Russia and EU
The Industrial Policy Ministry notes that the ministry's initiative on "voluntary self-restrictions" in production and exports of metal products under the global crisis has been positively accepted on the world market, Minister Volodymyr Novytskyi told a round table On Overcoming Negative Phenomena in Metallurgical and Allied Industries, the ministry's press service informed. Thus, according to the minister, the Chinese government agreed to cut down production by leading Chinese metal companies by 10 percent over next two months. The ministry got an answer on its address to the Organization for Economic Cooperation and Development (OECD). The OECD assured that Ukraine's proposal on introduction of a mechanism for voluntary self-restriction has been included into an agenda of the Steel Committee meeting in early December. A positive answer has been received from the EU too: a contact group on steel will consider the Ukrainian proposal and is ready to support it. In addition, the Trade-Economic Mission within the Ukrainian Embassy in Russia informed that the present initiative has been also supported by Russian metal producers.
In October, Ukraine at a meeting of the bipartite Intergovernmental Commission on Trade-economic Cooperation in Beijing gave publicity to an initiative to start negotiations with world metal producers about restriction of metal production and exports till 2008-end approximately by 10 percent to balance demand and supply on the world market.
The Industrial Policy Ministry also approached owners of leading Ukrainian metallurgical companies with this proposal, such as Corporation Industrial Union of Donbas, OJSC ArcelorMittal Kryviy Rih, LLC MetInvest Holding, EurazHolding and OJSC ZaporizhStal. According to Deputy Industrial Policy Minister Serhiy Hryshchenko, Vice President of the Ferrous Metallurgy Association, as of late October, 16 blast furnaces out of 43 have been stopped completely in Ukraine, as well as 24 steel-smelting units out of 63 and nine rolling mills out of 64. During the first two weeks, average production of finished steel over 24 hours made up only 56 thousand tons against 71 thousand tons in September and 104 thousand tons in H12008 and it continues to be reduced. "If all of us restrict ourselves and cut down production by 10-15 percent, we will be able to stabilize the market and renew a balance of demand and supply", he said.
As Prime Minister Yulia Tymoshenko noted at a recent meeting with representatives of the mining and smelting complex, high export orientation is one of key problems in metallurgy. And in order to overcome a crisis metallurgists have to re-orient to the domestic market. At the same time, the Government demands from metallurgists to establish optimal prices on the domestic market.
Ukraine ranks the eighth by steel production in the world - 43 million tons in 2007.
14.11.2008 Source: Ukrinform

Cabinet, metallurgists sign memorandum of understanding
The Cabinet of Ministers signed a memorandum of understanding with mining and smelting enterprises, Federation of Metallurgists of Ukraine and trade unions. The instrument, which incorporates obligations on behalf of the government and metallurgists to back Ukraine's mining and smelting sector, was signed following a meeting of Prime Minister Yulia Tymoshenko with representatives of mining and smelting enterprises. Prime Minister Yulia Tymoshenko signed the document on behalf of the Cabinet. Signing the memorandum on behalf of the enterprises was leadership of the corporations Smart Group, ISD, Head of Administration of OJSC ArcelorMittal Kryviy Rih, Heads of Boards of Ilych Iron and Steel Works of Mariupol, CJSC DonetskStal - DMZ, Vice President of EvrazHolding LLC, Director General for Management of Interpipe Corp. Signing the memorandum of understanding were also Head of the Central Committee of the Trade Union of Workers of Mining and Smelting Industry, acting Head of the Federation of Trade Unions of Ukraine and Head of the Federation of Metallurgists of Ukraine.
The Memorandum was inked by the owners and top managers of the most powerful enterprises of the branch.
In accordance with the document, the Cabinet of Ministers accepts liabilities, in particular, to provide credits at the lowest interest rates to the branch and ensure the soonest GDP offset. From their part, enterprises of the mining and smelting complex are obliged to hold positions of employment, wage level and other social guarantees for employees of the branch.
11.11.2008 Source: Ukrinform

Steel orders fall cools Ukraine growth
Abrupt signs of recession are being felt in the eastern industrial heartland of Ukraine. Donetsk, the largest steel and coal-mining town in this export-oriented region is suffering from falling orders.
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11.11.2008 Source: Financial Times

Yulia Tymoshenko: Metal production prices in domestic market should be reduced
Prime Minister Yulia Tymoshenko urges to reduce metal production prices in the domestic market. She declared meeting with owners of enterprises and unions of the mining and smelting complex of Ukraine. "The Government will strongly object if export prices you had before the crisis you'll automatically impose on the domestic market protecting your profits in that way," the PM stated. According to the Head of Government, the Memorandum of Understanding between the Cabinet of Ministers and the MSC enterprises sets out liabilities of the mining and smelting companies to implement measures on reduction of the metal production net cost. "If we agree with you and meet halfway the prices in domestic market should be such that give an opportunity to reduce the Ukrzaliznytsia tariffs for you, reduce the electric power prices and this means that all metal production prices in the domestic market should be reduced and adequate prices for the world markets fixed," the Premier emphasized.
10.11.2008 Source: Government portal

Metinvest signs Memorandum of Understanding on condition that government won't regulate prices in domestic market
Igor Syry, CEO of Metinvest Holding, signed the Memorandum of Understanding developed for the Cabinet, mining and metal businesses and trade unions, on the condition that the section on Cabinet's fixation of sale prices for rolled metal, coke, iron ore raw materials and other products in the domestic market will be omitted. "We believe that signing the Memorandum is an important step in the history of Ukraine's statehood. We are confident that quick realization of the measures stipulated in the document by all signatories will improve chances of the mining and metal industry of Ukraine to minimize the fallout of the challenging economic situation", said Igor Syry.
10.11.2008 Source: Press-service Metinvest Group

Recession reports - Ukrainian economy to shrink in 2009 - IMF
Deteriorating exports, limited external financing and a credit crunch will lead to a 3% decline in Ukraine's economy next year compared to this year's 6% GDP growth, the International Monetary Fund forecasts. The IMF said that about the approval of a USD 16.4 billion stand by loan to support of Ukraine's two year anti crisis program. It said that "under the program, inflation is expected to decrease to 17% by end 2009 from the projected 25.5% this year.
10.11.2008 Source: Ukrainian Journal

Steel production down by 25% to 1.9 million tons in October
Production of rolled metal down by 25.9% to 1.6 million tons in October
Production of steel pipes down by 5% to 191,600 tons in October
Production of iron ore materials down by 24.5% to 4.8 million tons in October
10.11.2008 Source: Ukrainian News Agency

IMF grants USD 16.4 billion to Ukraine to overcome economic problems
The International Monetary Fund has made the decision to grant about USD 16.4 billion to Ukraine to dampen the negative impact of the global financial crisis on the country's economy and mitigate the impact of a collapse in the price of steel, one of its biggest exports, the IMF press service said this in the report. The decision was taken by the board of the IMF on November 5. The decision allows immediate allocation of the first tranche worth about USD 4.5 billion to Ukraine. In return Ukraine has committed to adopt a flexible exchange rate regime with targeted intervention, recapitalise its banks, reduce its budget deficit to zero in 2009 and tighten monetary policy.
06.11.2008 Source: Ukrainian News Agency

Gas traders expecting gas price at USD 250-260 on Russia-Ukraine border in 2009
Roman Storozhev, President of the Association of Ukraine's Gas Traders, expects a gas price for Ukraine in 2009 at USD 250-260 on the border with Russia. The advance in gas prices for Ukraine is inevitable, as this is part of Russia's energy strategy intending to flatten out the prices with the market ones till 2011. The expert pointed that natural gas consumption is expected to be reduced in Ukraine in 2009 due to the economic turmoil in the country. Besides, according to him, a gas price for Ukraine does not depend on oil price in the global market, as the rise in prices on natural gas is linked with price variation on natural gas in Europe and prices in Ukraine's domestic market, he believes. Under the accords reached, a gas delivery price to Ukraine in 2008 was fixed at USD 179.5 per 1,000 cu m.
06.11.2008 Source: Ukrinform

Ukraine drops steel output 25% MoM in October
The total crude steel output of Ukrainian steelmakers amounted to 1.86 million tons last month. This is 25% below the September reading of 2.48 million tons, and 47% down from the 9M08 average of 3.51 million tons. Ukraine's steel industry reduced finished roll output 6% year-on-year in the first 10 months of 2008 to 28.123 million tons.
05.11.2008 Source: Interfax

Ukraine's steel sector in 'critical' shape as demand falls
Ukraine's steel sector is in 'critical' shape due to falling demand overseas with urgent measures needed to help the industry weather the crisis, steelmakers said Tuesday. "Output fell 19% [on the month] in August, but in September the situation was simply critical," Vasyl Kharakhulakh, the head of steelmakers association MetallurgProm, said in a statement. This development could have an extremely negative impact on Ukraine's economic growth prospects and would immediately increase downward pressure on the hryvnia, the national currency, due to falling steel exports. Almost 40% of Ukraine's hard currency earnings come from exports of steel and steel products, according to the State Statistics Committee. Ukraine, the world's eighth biggest producer of steel, has been suffering from declining overseas demand for steel as construction activity slows in reaction to the credit squeeze plaguing international markets.
In reaction to the crisis, Ukraine's steel associations, joined by organizations uniting producers of iron ore, coke, steel products and steel pipes, met Monday to discuss emergency measures needed to revive the industry. The industry groups decided to appeal to the government to ask for the emergency measures to revive the sector, including setting up a special commission that would draft the measures. The government had earlier considered some measures to boost the sector,including reducing special surcharge on natural gas price and easing transportation costs to help the steel companies. The measures, however, were never approved and the industry has been seeking stronger action, analysts said.
07.10.2008 Source: Platts

Ukrainian coke output in 3 months of 2008 up by 8.8% YoY
Ukrainian coke producers increased coke output by 8.8% YoY in January to March 2008 and up by 11.4% MoM. The largest growth rates in March were posted by Avdiivka Coke plant (+14.7% m/m), Zaporizhkoks (+11.1% m/m) and the largest steelmaker Arcelor Mittal Kryvyi Rih (+27.4% m/m).
08.04.2008 Source: ugmk.info

Ukraine to produce 1 million cars by 2012
UkrAvto, Ukraine's biggest producer of cars, forecasts that by 2012 up to 1 million new cars will be produced in the country. Mr Oleh Papashev deputy chairman of UkrAvto at a recent press conference in Zaporizhia said that "We'll approach 1 million new cars in Ukraine by 2012. He said that after Ukraine ratifies an agreement on joining the World Trade Organization and the number of imported cars will grow, the development of ZAZ, UkrAvto's main manufacturing facility, will continue."
08.04.2008 Source: Ukrainian Journal

Ukraine ups iron ore imports 58.2% YoY in 2 months
Ukrainian steelmakers increased iron ore imports 58.2% YoY in January to February to 790,200 tonnes including 421,000 tonnes in February. Concentrate imports rose 13.7% to 348,600 tonnes, sinter 43.9% to 218,000 tonnes and pellets 440% to 223,700 tonnes in the two months including 180,300 tonnes, 125,300 tonnes and 115,500 tonnes in February. Ukrainian iron ore imports grew 76.2% to 3.55 million tonnes in 2007.
08.04.2008 Source: Ukrrudprom

Ukraine ups iron ore exports 16.5% YoY in 2 months
Ukraine raised iron ore exports tentatively 16.5% YoY in January to February to 3.611 million tonnes. Iron ore concentrate exports nearly doubled to 929,900 tonnes, pellet exports down by 4.2% to 1.419 million tonnes, and sinter ore exports rose, by 9.9% to 1.262 million tonnes. February iron ore exports came to 1.788 million tonnes overall, including 490,700 tonnes of concentrate, 643,100 tonnes of sinter and 654,400 tonnes of pellets. Iron ore exports rose 4.7% to 20.821 million tonnes in 2007.
08.04.2008 Source: Ukrrudprom

Ukrainian scrap metal exports grew 1.6% YoY in 2 months
Ukrainian scrap metal exports grew 1.6% YoY in the two months to 80,900 tonnes. Scrap yards collected 1.017 million tonnes of scrap in the two months including 573,300 tonnes in February. Ukrainian steel mills received 936,200 tonnes of scrap in January to February (+8% YoY). Scrap metal exports fell 7.8% in 2007 to 688,300 tonnes.
08.04.2008 Source: UAVtormet, the Ukrainian scrap metals association

Crude steel output grew 3.7% in Ukraine in 1Q 2008
Thirteen Ukrainian steelmakers increased crude steel output to a total of 10.83 million tonnes (+3.7% YoY) in 1Q 2008. Over the period pig iron output grew to 9.03 (+4.4% YoY), while rolled steel production reached 10.18 million tonnes to (+6.0% YoY). The highest crude steel growth in YoY terms was posted by Alchevsk Steelworks (+30.8%) and EMZ Group (Metalen, Yenakievskiy Steelworks) (+17.9%). ALMK also significantly increased steel output compared to 4Q2007 (+22.2%q/q) while EMZ Group decreased it 4.1%q/q. Mariupil Illich Plant insignificantly increased production (+0.1% y/y and 0.7%q/q). Kryvorizhstal and Azovstal decreased output in quarterly terms by 1.5% and 8% respectively.
04.04.2008 Source: ugmk.info

Ukraine increases metallurgical coke output 8.4% in Q1
Ukraine increased production of 6%-moisture metallurgical coke by 8.4% year-on-year to 5.31 million tons in the first quarter of 2008, including 1.85 million tons in March, according to preliminary figures.
04.04.2008 Source: Ukrainian Journal

En Route to Deeper Integration
The European Union and Ukraine have officially begun preliminary discussions for the creation of a free trade agreement (FTA) between them. Negotiations began following Ukraine's admission into the World Trade Organisation (WTO) on February 5, a mandatory prerequisite for FTA talks. Considering their strong bilateral trade, a step forward in their economic relationship would seem to be in the interest of both parties. The enlarged EU has replaced Russia as Ukraine's number one trading partner. In 2006, 25% of Ukraine's exports were absorbed by the EU (mainly basic commodities such as metal, energy, machinery, agricultural products and chemicals) generating EUR 8.7bn in revenue, while imports from the EU (mainly machinery, chemicals and transport equipment) made up 42% and amounted to EUR 17.8bn. EU-Ukraine bilateral trade surpassed EUR 26bn euros in 2006, and has been growing steadily in recent years. The EU is also the largest foreign investor in Ukraine. 04.04.2008 Source: Oxford Business Group

GDP 6.7% up in February
In February, real gross domestic product rose by 6.7%, compared to February 2007, to UAH 60,837 million. In February the largest GDP growth could be seen in trading - by 14.3%, processing industry - 9.8%, transport - 8.3%. In January-February GDP rose by 5.8%, compared to January-February 2007, to UAH 118,557 million. In 2007, real gross domestic product rose by 7.3%, compared to 2006, to UAH 709,445 million. The Cabinet of Ministers has approved the major macroeconomic indicators of Ukraine's development, including GDP growth at the level of 7.2% and inflation rate - 6.8% for 2008.
14.03.2008 Source: State Statistics Committee of Ukraine

Industrial output up by 11.5% in February
In February 2008, industrial output grew by 11.5%, on February 2007. Industrial output rose by 4.6% in February 2008, compared to January 2008. In January-February 2008 industrial output rose by 8.8%, compared to January-February 2007. In 2007, industrial output rose by 10.2% compared with the year 2006.
11.03.2008 Source: State Statistics Committee of Ukraine

Ukraine increased steel roll output 4% in 2 months
Ukraine's steel industry raised finished roll output 4% year-on-year in January-February to 6.105 million tonnes. Steel pipe production fell 16% to 371,000 tonnes. Ukraine produced 7.1322 million tonnes of crude steel, up 3%, and 5.923 million tonnes of pig iron, up 4% year-on-year.
Iron ore concentrate production grew 8% to 10.331 million tonnes, prepared iron ore was unchanged at 11.691 million tonnes and sinter was unchanged at 8.093 million tonnes. Pellet production grew 1% to 3.598 million tonnes and crude iron ore production rose 6% to 12.98 million tonnes.
Ukrainian coke production rose 11% to 3.529 million tonnes but metalware output fell 13% to 63,000 tonnes.
Scrap deliveries to Ukrainian steel mills grew 8% year-on-year to 936,000 tonnes.
04.03.2008 Source: Ministry of Industrial Policy

Federation of Metallurgists forecasting 29% increase in prices of metal products in 2008
Metallurgists Federation Chairman Kharkhulakh says metal production in Ukraine may be stalled due to cessation of gas supply
04.03.2008 Source: Ukrainian News

Industry Ministry submits draft resolution of creation of state vertically integrated holding in titanium production
The Industry Ministry of Ukraine has drawn up and submitted to the cabinet a draft resolution on the creation of a state vertically integrated holding in titanium production, Deputy Industry Minister Serhiy Hryschenko, said on Tuesday. He said that the document was drawn up in the fulfillment of a cabinet instruction. It stipulates the development of the metallurgical and chemical sectors in titanium production. As reported, board chairman of the OJSC Sumykhimprom, Yevhen Lapin, said that the creation of the national joint-stock company Titan Ukrainy, in which the state would control a 50% +1 share stake, would result in control of up to 25% of the world's titan-magnesium ore deposits.
27.02.2008 Source: Interfax

Ukraine still eighth biggest steelmaker in the world
Ukraine remained the eighth largest of the world's 67 main steel producing countries in January 2008, and it increased steel production by 0.8% year-over-year to 3.642 million tonnes. Along with Ukraine, the top ten steelmakers in January 2008 were China (40.892 million tonnes, a 7.3% rise), Japan (10.25 million tonnes, a 1.8% rise), the United States (8.4 million tonnes, a 11.4% rise), Russia (6.53 million tonnes, a 3.4% rise), India (4.799 million tonnes, a 8.8% rise), South Korea (4.35 million tonnes, a 0,8% decline), Germany (4,108 million tonnes, a 4,9% fall), Brazil (3,070 million tonnes, a 13.6% rise) and Italy (2.85 million tonnes, a 6.6% rise). In January, Ukrainian producers increased steel output by 74,000 tonnes compared to December 2007. In January 2008, the key steel producers, accounting for 98% of world output, smelted 113.039 million tonnes of steel, which was 4.9% up on January 2007.
23.02.2008 Source: The International Iron and Steel Institute (IISI)

Ukrainian steel traders see sales soar 63% in February
Ukrainian traders sold 208,755 tonnes of rolled steel products in February, 63.2% more than in the previous month, Ukrainian Metal Traders Association president Andriy Fedoseyev, citing tentative figures. Traders increased imports of rolled steel products by 180% to 39,403 tonnes. The Metal Traders Association includes 21 metal traders in various parts of Ukraine and is one of the organizers of the Metal-Forum of Ukraine.
20.02.2008 Source: Interfax

Ukraine to carry on projects for manufacture of AC/DC electric lokomotives
Ukraine plans to continue the implementation of a project for the manufacture of alternating current/direct current (AC/DC) electric locomotives, said Andrea Raffaseder, the Director General of Kyiv-based Siemens Ukraine, a subsidiary of Siemens AG of Germany. According to her, the company plans to draft within a year blueprints for such a locomotive, with the simultaneous production of the two prototypes in Germany and certification in Ukraine. After this, she said, it would be possible to produce a pilot batch of eight locomotives by 2009. Further plans foresee the beginning of mass production after 2009. Mass production plans by 2014 foresaw the manufacture of 50 such locomotives.
19.02.2008 Source: Interfax

EUROMETAL forecasts consolidation of metal producers in CIS
The European Association of Steel Service Centers (Eurometal) forecasts near-term consolidation in the CIS steel sector, which has the potential to change the face of the global steel market. Eurometal expects the market to be quickly concentrated into one or two major players, association Vice President Jurgen Nusser said in Moscow at the CIS Metallurgical Summit. There are a host of CIS metals companies - major players on their own markets - that have operations on the European market: Russia's Severstal, Evraz Group, and Novolipetsk Iron & Steel Company (NLMK); and Ukraine's System Capital Management and Industrial Union of Donbass. He noted Ukraine has virtually entered the WTO and Russia will join next year, after which quotas on deliveries of steel to the EU will be canceled. The world market is currently dominated by a group of 15 major players that define the situation. They include Indian companies, CIS companies and others, he said.
18.02.2008 Source: Interfax

Ukraine, EU start talks on free trade zone
Ukrainian President Viktor Yuschenko and European Commissioner for Trade Peter Mandelson announced at a meeting that talks on the creation of a free trade zone between Ukraine and the European Union have formally begun in Kyiv on Monday.The president stressed that the main goal of Ukraine is to reach a political decision on the creation of free trade zone between Ukraine and the EU by this September.
18.02.2008 Source: Interfax

Growth of FDI in Ukraine in 2007 estimated at USD 7.88 billion
The growth of foreign direct investment (FDI) in Ukraine in 2007 was estimated at USD 7.882 billion, which was 67.1% up on 2006. Foreign investors injected USD 8.711 billion in direct investments into Ukraine's economy in 2007, while withdrawing USD 1.178 billion. The overall amount of FDI in Ukraine by January 1, 2008, was USD 29.489 billion.
18.02.2008 Source: State Statistics Committee of Ukraine

Ukrainian companies' net profit up 1.7 times in 2007
Ukrainian companies in 2007 saw UAH 121.4 billion in pretax profit from their activities, which was 1.7 times more year-over-year. Last year 71.1% of Ukrainian companies finished 2007 in profit - the total volume being UAH 147.2 billion, which is 1.5 times more year-over-year, while 28.9% of Ukrainian companies made a combined UAH 25.8 billion loss, which is 1.1 times more year-over-year.
18.02.2008 Source: State Statistics Committee of Ukraine

GDP 4.9% up in January
In January, real gross domestic product rose by 4.9%, compared to January 2007, to UAH 57,720 million. As earlier reported, the Cabinet of Ministers has retained the outlook for GDP growth at the level of 6.8% for 2008. The World Bank retained the GDP growth outlook at the level of 5.5% and downgraded the inflation outlook from 9.6% to 13.8% for 2008. In 2007, real gross domestic product rose by 7.3%, compared to 2006.
16.02.2008 Source: State Statistics Committee of Ukraine

Ukraine ups iron ore exports 14.4% in January
Ukraine raised iron ore exports tentatively 14.4% year-on-year in January to 1.837 million tonnes. Iron ore concentrate exports grew 96.7% to 439,200 tonnes, pellet exports edged up 0.7% to 778,500 tonnes.
14.02.2008 Source: Ukrrudprom

Ukraine reduces scrap metal exports 7.1% in January
Ukraine exported 40,800 tonnes of scrap ferrous metal in January, 7.1% less than a year earlier, according to preliminary figures from the UAVtormet scrap industry association. Scrap merchants shipped 403,000 tonnes to domestic steelmakers in January. UAVtormet reported earlier that Ukraine exported 688,300 tonnes of scrap ferrous metal in 2007, 7.8% less than a year earlier, according to preliminary figures. UAVtormet head Ivan Zaitsev said at a metals and mining industry review in January that scrap procurements have been hovering around 7.7 million tonnes annually for the past three years. Ukrainian steelmakers have requested 8 million tonnes of scrap for 2008, but merchants will not be able to deliver so much this year, he said. He urged steel companies to base their plans on actual supply, and to import scrap from other countries if possible.
14.02.2008 Source: UAVtormet

Traders forecast 20% growth for Ukrainian steel market
Demand for rolled steel products in Ukraine will grow 21% to 11.5 million in 2008, Ukrainian Metal Traders Association president Andriy Fedoseyev told. The domestic market will expand on the back of growth in the engineering sector and construction, he said, adding that steel consumption will increase with the acceleration of reconstruction and equipment updates in light of Ukraine's accession to the World Trade Organization. Ukraine's domestic steel roll market grew 26.5% to 9.453 million tonnes in 2007. Metal traders accounted for 30% of consumption on the domestic market, up from 28% in 2006. Ukrainian Association of Metal Traders is one of the organizers of the Metal-Forum of Ukraine.
11.02.2008 Source: Interfax

Ukrainian steel exports to Russia up 18%, as imports jump 38%
Ukraine increased exports of rolled steel products to Russia by 18% to 2.6 million tonnes in 2007, while imports from Russia jumped 38% to 1.3 million tonnes. Ukraine exported 2.2 million tonnes of rolled steel products to Russia in 2006, which was 16% more than in the previous year, Ukrainian Metal Traders Association president Andriy Fedoseyev said. Imports of such products from Russia, meanwhile, surged 56% in 2006, to 0.9 million tonnes. Flat products made up about 57% of Ukrainian steel roll exports to Russia, and long products made up the remainder. Ukrainian Association of Metal Traders is one of the organizers of the Metal-Forum of Ukraine.
09.02.2008 Source: Interfax

Industrial output 5.7% up in January
Ukraine's industrial output in January 2008 was 5.7% up on January 2007, whereas industrial output in January 2007 was 16.3% up on January 2006. As was reported earlier, industrial production in Ukraine in 2007 grew by 10.2% from 2006, whereas the growth rate in 2006 was lower - 6.2%. The Economy Ministry forecast that in 2008 industrial production growth in Ukraine might slow down to 7.8%.
09.02.2008 Source: State Statistics Committee of Ukraine

Ukrainian coke production up 10% in January
Ukraine increased production of 6%-moisture metallurgical coke by 9.9% year-on-year to 1.821 million tonnes in January, according to preliminary figures. Coke producers managed to increase output despite the shortage of coking coal caused by growing demand, including by importing coal from Russia, Kazakhstan, the United States and Canada, the head of industry association Ukrkoks, Anatoliy Starovoit told. He said Ukraine imported 682,600 tonnes of enriched and regular coking coal from Russia in January, 96,000 tonnes from Kazakhstan and 117,500 tonnes from the United States and Canada. Coking plants also received 1.683 million tonnes of coking coal and concentrate from domestic producers.
07.02.2008 Source: Ukrkoks

Ukrainian pipe production drops 19% in January
Ukraine decreased production of ferrous metal pipes by 18.5% year-on-year to 165,100 in January 2008. However, a spokesman for major pipe products merchant Trubokomplekt, Oleh Pokhilko said there is still demand on the domestic market for small and medium pipes. He said all pipe manufacturers have raised prices, but a number of traders still sell pipes at below factory-gate prices because they have large inventories. However, this situation will not last more than a month, after which prices will equalize, Pokhilko said.
07.02.2008 Source: Ukrtruboprom

Ukraine boosts pipe exports to Russia 7% in 2007, import down 26%
Ukrainian companies boosted steel pipe exports to Russia tentatively 7% to 800,000 tonnes while Russian pipe imports decreased 26% to 20,000 tonnes in 2007, said Andrei Fedoseyev, president of the Ukrainian Association of Metal Traders. Fedoseyev said that in 2006 Ukraine exported 700,000 tonnes of piping to Russia, up 55% in comparison with 2005. Import of Russian production to Ukraine in this period increased 23% to 27,000 tonnes. The share of Ukrainian deliveries to Russia came to 55% in 2007. "According to our estimates, deliveries of Ukrainian pipes to Russia will come to 900,000 million tonnes while Russian exports to Ukraine will reach 20,000-25,000 tonnes," Fedoseyev said. Ukrainian Association of Metal Traders is one of the organizers of the Metal-Forum of Ukraine.
07.02.2008 Source: Interfax

Ukraine reaches agreement on accession to WTO
Ukraine and the World Trade Organization have reached agreement on admission of Ukraine into the organization. President Viktor Yuschenko and WTO Director-General Pascal Lamy signed the protocol on admission of Ukraine into the WTO. Ukraine must ratify the relevant documents by July 4, 2008. Ukraine will become a member of the WTO within 30 days after the ratification. The WTO membership will ensure that Ukrainian goods have freer access to markets of other countries and foreign goods freer access to the Ukrainian market. The WTO has over 150 member-countries.
06.02.2008 Source: Ukrainian News Agency

Ukraine uses 75% of Russia's cold-rolled steel quota as of Feb. 1
Ukrainian steel mills from July 1, 2007 to February 1, 2008 obtained licenses to ship 150,000 tonnes of cold-rolled steel, or 75% of the country's annual quota (from July 1, 2007 to June 30, 2008) of 200,000 tonnes of cold-rolled steel for Russia. As reported, the Ukrainian cabinet has approved the size of quotas on the supply of Ukrainian cold-rolled steel to Russia by June 30, 2010.
06.02.2008 Source: Ukrainian Ministry of Economy

Ukraine uses 4% of Russian rebar quota in January
Ukrainian steel mills in January 2008 obtained licenses to ship 13,105 tonnes of rebar, or 3.97% of the annual quota for the current year (330,000 tonnes). As reported, the Ukrainian cabinet has approved quotas on reinforced steel rebar shipments to Russia until December 31, 2010, according to an agreement on the regulation of rebar supplies to Russia signed between the Ukrainian Economy Ministry and Russian Economic Development and Trade Ministry.
06.02.2008 Source: Ukrainian Ministry of Economy

Ukraine uses almost 10% of EU rolled steel quota in January
Ukrainian steel mills in January 2008 obtained licenses to ship 132,931 tonnes of rolled steel, or 9.82% of the country's 2007 quota of 1.353 million tonnes of rolled steel for the European Union. Since the beginning of the year, steel mills received licenses to export 13,225 tonnes of SA1 category flat roll in coils to the EU, or 6.79% of the quota for this commodity; 51,446 tonnes of SA2 uncoiled flat roll, or 12.87% of the quota; and 3,855 tonnes of SA3 flat roll, or 2.69% of the quota. They were licensed to export 13,360 tonnes of SB2 commodities, or 6.68% of the quota; and 51,045 tonnes of SB3 semi-finished and wire rods, or 14.03% of the quota. Steel mills did not obtain licenses to ship SB1 semi-manufactures and shapes and sections. As reported, the Ukrainian cabinet has set the steel export quota for the European Union at 1.353 million tonnes, which is 2.5% more than in 2007.
06.02.2008 Source: Ukrainian Ministry of Economy

Ukraine uses almost 7% of quota for steel plate shipments to US in January
Ukrainian metallurgical enterprises received licenses in January 2008 to supply 10,330 tonnes of cut carbon steel plate to the United States, or 6.86% of its annual quota (150,638 tonnes). As was reported, the Ukrainian Economy Ministry and the U.S. Department of Commerce approved the cut carbon steel plate export quota for the United States at 150,638 tonnes until October 31, 2008, while this quota for 2007 was 142,111 tonnes. In 2007, Ukrainian exporters received licenses for the supply of 61,257 tonnes of cut-to-length carbon steel plate to the United States, which was 43.11% of that year's annual quota.
06.02.2008 Source: Ukrainian Ministry of Economy

Ukraine reduces steel roll output 1% in January
Ukraine's steel industry reduced finished roll output 1% year-on-year in January to 3.056 million tonnes. Ukraine produced 3.642 million tonnes of crude steel, up 1%, and 3.012 million tonnes of pig iron, up 2% year-on-year. Steel pipe production plummeted 19% to 165,000 tonnes.
Iron ore concentrate production grew 7% to 5.358 million tonnes but prepared iron ore fell 3% to 5.919 million tonnes, including pellets - 2% to 1.826 million tonnes and sinter ore - 3% to 4.093 million tonnes. Crude iron ore production rose 6% to 6.695 million tonnes.
The ministry said overall roll output fell due to problems with iron ore and coke deliveries to Zaporizhstal, one of the country's biggest steel mills. However these have now started to recover following the signing of a long-term contract with the Metinvest group.
05.02.2008 Source: Interfax

Nigeria seeking broader cooperation with Ukraine in metal industry
Ukrainian Ambassador to Nigeria Oleh Skoropad met with Minister of State for Mines and Steel Development of Nigeria Ahmed Gusau on January 30. The ambassador informed the minister of the way the Ukrainian metallurgical sector is developing, the participation of Ukrainian specialists in the development of the same sector in Nigeria, at the metal mills in Jos and Ajaokuta in particular. The minister said his country has a good knowledge of Ukraine's potential in the area of metallurgy and, therefore. He expressed support for the project of modernization of rolling mills in Jos, which is conducted with the participation of Ukrainian investors, and indicated hope that Ukrainian specialists will be also invited to take part in the process of expanding the metallurgical complex in Ajaokuta. The minister invited Ukrainian businessmen to take part in the development of mineral deposits in Nigeria, coal, zinc and lead deposits in particular.
01.02.2008 Source: Ukrainian News Agency

GDP 7.3% up in 2007
In 2007, real gross domestic product rose by 7.3%, compared to 2006. This was disclosed by the State Statistics Committee at its official site entitled "Major indicators of social and economical development of Ukraine". The Cabinet of Ministers has set its 2008 major macroeconomic indicators, in particular, GDP growth at 7.2%, and inflation outlook at 6.8%.
18.01.2008 Source: State Statistics Committee of Ukraine

Steelmakers plan to produce 40.6 million tons of rolled product in 2008
Ukrainian steelmakers plan to produce 38.3 million tons of pig iron, 46 million tons of crude steel and 40.6 million tons of rolled products in 2008, the head of industry association Metallurgprom, Vasyl Kharakhulakh said at an industry meeting. The country produced 35.6 million tons of pig iron, 42.8 million tons of crude steel and 36.2 million tons of finished roll in 2007, according to tentative figures, so production could increased by respectively 7.6%, 7.5% and 12.2% this year. Industrial Association Metallurgprom is one of the organizers of the Metal-Forum of Ukraine.
18.01.2008 Source: Ukrainian Journal

Ukraine to join with EU to raise EUR 2.5 billion to upgrade pipelines
Ukraine, jointly with the European Union, plans to raise 2.5 billion euros over the next five years to upgrade its oil and natural gas pipelines moving energy resources from Russia to Europe. The plan, disclosed by the Ukrainian energy and fuel ministry Friday, calls for a special donor conference, perhaps between July and September, which would help to raise the cash.
18.01.2008 Source: Ukrainian Journal

Steel mills alarmed about planned increase in rail cargo tariffs
Ukrainian steel mills are alarmed at the planned increase in railway tariffs for cargo shipments, which will yield additional costs of around UAH3.3 billion, Vasyl, Kharakhulakh, the director general of industry association Metallurgprom said at a meeting of representatives of mining and metallurgical companies. He said that additional expanses would cut the steel mill's profit. Kharakhulakh said that Ukrainian steel mills in 2007 saw UAH13.7 billion in pretax profit and their average profitability was 16.3%, while in 2006 it was 15.7%. Industrial Association Metallurgprom is one of the organizers of the Metal-Forum of Ukraine.
17.01.2008 Source: Ukrainian Journal

Yuschenko suggests canceling licensing of scrap metal procurement and processing
President Viktor Yuschenko proposes that the Verkhovna Rada abolish licensing of procurement and processing of scrap metal. As he noted, the main aim of the draft laws is to significantly simplify permissive and regulating procedures in entrepreneur activity, bringing them closer to European standards, particularly reducing the number of activities that are subject to licensing. The Ukrainian Metal Scrap Association says the Secretariat's initiative to cancel licensing of scrap metal is an inexpedient step.
17.01.2008 Source: Ukrainian News Agency

Ukrainian industrial production up 10.2% in 2007
Industrial production in Ukraine grew 10.2% in 2007 following growth of 6.2% in 2006. Industrial production grew 5.5% in December 2007 compared to December 2006, the lowest growth level over the previous 12 months. Industrial output edged up 0.3% in December compared to November. Growth in the manufacturing industry totaled 11.7% in 2007 with the biggest rise seen in the machine building industry at 28.6%. The Ukrainian Economics Ministry has predicted that growth in industrial production could slow to 7.8% in 2008.
11.01.2008 Source: State Statistics Committee of Ukraine

Ukraine uses almost 93% of EU rolled steel quota in 2007
Ukrainian steel mills in 2007 obtained licenses to ship 1.231 million tonnes of rolled steel, or 93.27% of the country's 2007 quota of 1.320 million tonnes of rolled steel for the European Union. The ministry said that since the beginning of the year, steel mills received licenses to export 166,616 tonnes of SA1 category flat roll in coils to the EU, or 87.69% of the quota for this commodity; 387,929 tonnes of SA2 uncoiled flat roll, or 99.47% of the quota; and 113,965 tonnes of SA3 flat roll, or 81.4% of the quota. They were licensed to export 49,983 tonnes of SB1 semi-manufactures and shapes and sections, or 99.97% of the quota; 195,000 tonnes of SB2 commodities, or 100% of the quota; and 317,680 tonnes of SB3 semi-finished and wire rods, or 89.49% of the quota. The Ukrainian cabinet has set the steel export quota for the European Union at 1.353 million tonnes, which is 2.5% more than in 2007.
11.01.2008 Source: Ministry of Economy of Ukraine

Ukraine uses 53% of Russia's cold-rolled steel quota in 2007
Ukrainian steel mills in 2007 obtained licenses to ship 106,250 tonnes of cold-rolled steel, or 53.13% of the country's annual quota (from July 1, 2007 to June 30, 2008) of 200,000 tonnes of cold-rolled steel for Russia. As reported, the Ukrainian cabinet has approved the size of quotas on the supply of Ukrainian cold-rolled steel to Russia by June 30, 2010, according to a three-year agreement on the regulation of cold-rolled steel supplies to Russia signed in June. According to a cabinet resolution of July 25, 2007, the 2007 quota is set at 200,000 tonnes, from July 1, 2008 through June 30, 2009 at 205,000 tonnes, and from July 1, 2009 through June 30, 2010 at 210,000 tonnes.
11.01.2008 Source: Ministry of Economy of Ukraine

Ukraine uses 43% of quota for steel plate shipments to US in 2007
Ukrainian metallurgical enterprises received licenses in 2007 to supply 61,257 tonnes of cut carbon steel plate to the United States, or 43.11% of its annual quota. The quota for 2007 was increased to 142,111 tonnes from 138,106 tonnes for 2006.
11.01.2008 Source: Ministry of Economy of Ukraine

Steel makers in Ukraine improve results in 2007
Ukrainian steel makers saw better results in 2007 due to an increase in the transparency of their managing structures, a rise in production and increases in the world price of steel, according to a review of Kiev-based Dragon Capital. "Ukrainian steel companies reported much better performance over the first nine months of 2007 thanks to improved financial disclosure and higher steel prices. At the same time, steelmakers benefited from relatively stable input costs in Q2-Q3 2007 as steel prices rose 20-35% year-on-year over the period," Ivan Kharchuk, the Dragon Capital analyst, said. He said that the companies received opportunities to increase sales by 34-37% and improved EBITDA by 45-107%, increasing their average EBITDA margin by 4.1 percentage points, to 19.5%. Kharchuk said that domestic steel companies would face another gas price hike of 31% to USD 220 per thousand cubic meters next year. The analyst said that raw materials self-sufficient companies will be in a more advantageous position.
10.01.2008 Source: Dragon Capital

Cabinet sets EU steel export quota at 1.353 million tons, up 2.5%
The Ukrainian cabinet has set the steel export quota for the European Union at 1.353 million tons, 2.5% more than in 2007.On the list of goods, exports and imports of which are to be licensed and quotas for 2008, the SA1 category flat roll in coils export quota was increased from 190,000 tons in 2007 to 194,750 tons in 2008, the SA2 uncoiled flat roll export quota from 390,000 tons to 399,750 tons, and the SA3 flat roll export quota from 140,000 tons in 2007 to 143,500 tons.
10.01.2008 Source: Ukrainian Journal

Ukraine uses 36% of Russian rebar quota in 2007
Ukrainian steel mills in January through November 2007 obtained licenses to ship 40,988 tonnes of rebar, or 36.6% of the annual quota for the last year (112,000 tonnes). As reported, the Ukrainian cabinet has approved quotas on reinforced steel rebar shipments to Russia until December 31, 2010, according to an agreement on the regulation of rebar supplies to Russia signed between the Ukrainian Economy Ministry and Russian Economic Development and Trade Ministry. The 2008 quota is 330,000 tonnes, incl. 49,500 tonnes for Q1 and Q2 each, and 115,500 tonnes for Q3 and Q4 each.
10.01.2007 Source: Ministry of Economy of Ukraine

Ukraine attractive for Japanese business
Ambassador of Japan to Ukraine Mutsuo Mabuchi considers that Ukraine is an attractive site for investments by Japanese business. "Talking about the general position of Japanese businessmen ,it is safe to say that they choose Ukraine as a place for investments," he told journalists at a press conference in Kyiv on January 10. Mabuchi said that lately, the number of Japanese businessmen working in and visiting Ukraine, and in particular Kiev, had increased.
10.01.2008 Source: Interfax

Cabinet introduces licenses for export of precious metals in 2008
The Cabinet of Ministers has introduces licenses for export of precious metals in 2008. The Cabinet of Ministers established the following export quotas: 1,000 kilograms of silver (including silver plated with gold or platinum) in the unprocessed or semi-processed form as well as in powder form (excluding banking metals), 80 kilograms of gold (including platinum-plated) in the unprocessed or semi-processed form as well as in powder form (excluding banking metals), 300 kilograms of gold waste and scrap, and 200 kilograms of silver waste and scrap. Export licenses are to be issued by the Finance Ministry. Export and import of precious metals that are considered banking metals are subject to licensing by the National Bank of Ukraine.
09.01.2008 Source: Ukrainian News Agency

Ukraine's coke imports spike following explosions at Zasyadko mine
Ukraine's imports of coke, a raw material used for steelmaking, increased 37.6% on the month in November following a shutdown of the country's biggest coking coal producer due to a series of recent explosions. Ukraine's imports of coke rose to 195,150 metric tons in November, up from 141,780 tons imported in October, the State Statistics Committee reported.
08.01.2008 Source: Ukrainian Journal

Ukraine reduces coal production 6% in 2007
Ukraine reduced coal production by 6% or by 4.82 million tonnes in 2007 to 75.437 million tonnes. Last year, production of coking coal fell 5.8% or 1.749 million tonnes to 28.396 million tonnes, and output of steam coal dropped 6.1% or 3.071 million tonnes to 47.041 million tonnes. Ukrainian coalmines fulfilled 98.9% of the ministry's coal production target for 2007, including 113% for coking coal and 91.9% for steam coal.
04.01.2008 Source: Ukrainian Coal Industry Ministry

Inflation in Ukraine hits record high of 17% in 2007
Inflation in Ukraine in 2007 hit a record high of 17%, said Prime-Minister Yulia Tymoshenko. "The inflationary processes need to be urgently stopped, and this work must be done strictly in line with World Trade Organization membership requirements," she added. The State Statistics Committee has not yet officially announced inflation over the whole of 2007, although it is already clear that the figure will be the highest since 2000, when it was 25.8% (December over December).
04.01.2008 Source: Interfax