UKRAINE ANALYSISCONTENTS:-Location on World MapNatural resources of UkraineChief ExportsChief ImportsUkraine metallurgy OverviewProduction scenario & Export of steel to Ukraine 2011-2012Ukraine Scrap metalFOB prices
Natural Resources of Ukraine5% of world reserves of iron ore which is about46% of all of the former USSRCoal reserves amount to 47.1 billion tonsDeposits of iron ore (estimated at 28 billiontons), manganese ore (3 billion tons), chalk andlimestone (1.5 billion tons) are also large inUkraine.Natural gas reserves of 39.6 trillion cubic feet
Chief Exports/Imports Ferrous and non-ferrous metals Fuel and petroleum products Oil and gas, machinery and parts
Ukraine metallurgy OverviewMining-metallurgical complex (MMC) Companies of Ukraine accountsfor 65% of the country’s steel productionThe MMC of Ukraine supplies only 20% of metal products to thedomestic market and exports 80%Even with the powerful metal industry Ukraine has been lately importingover 1 million tons of metal per yearItshould be expected that in the near future the metallurgists of Chinaand India, due to quick development, would drive foreign metal productsfrom their markets and would increase their shares in the Near Eastcountries and IndochinaUkraine uses 52.8 man-hours to produce one ton of steel, while Russiauses 38.1 and Germany - 16.8 man-hourAt full loading of metal works in Ukraine with full metallurgical cyclethe productivity of labor is around 200-250 tons of steel per 1 worker peryear, while the modern electric-metallurgical mini-mills with capacity of1.5-2 million tons of steel per year yield 3000-4000 tons
Production scenario & Export of steelto Ukraine 2011-2012STEEL PRODUCTION IN UKRAINE (million ton) Products/Year "2007" "2010" "2011" Pig iron 35,6 27,4 28,9 Steel 42,8 32,7 34,7 Steel products 36,2 30,7 31,7UKRAINIAN STEEL EXPORT (million ton) Europe (notYear/Region EC Middle East CIS Asia Africa America EC)2010 5,7 5,6 3,2 3,7 2,6 1,9 0,82011 6,4 5,3 3,3 3,1 2,2 1,5 0,7
Scrap FOB Prices at variousports • $400-410/t FOB Sea ports (Odessa, Nikolayev) • $398-399/t FOB River ports (Kherson, Nikolayev)
Pig iron prices start growing in EuropeAccording to thedata,Ukrainie hasquoted its materialto Italy at$375-385/t C&F ($350-360/t FOB Azov-Black Sea ports).While the lastquote byUkrainian-origin pigiron was at $375-380/t C&F.
Comparative Analysis of variousproducts Importers from UkraineCountry Material ports Prices FOB C&FItaly Pig iron Azov-Black $350-360/t $375-385/t Sea portsTurkey Pig Iron Azov-Black $360-370/t $375-385/t Sea ports Long/Semi Fin $520-525/t Flat $550-560/tIraq Re-Bar $670-685/t offer pricesUAE(Emirati HRC $555-565/tbuyers) Plates $580-590/t