Translated by Ollie Richardson & Angelina Siard
Ukrainian Metallurgists are seriously anxious about the change of the situation in the world steel markets in connection with the introduction by the US of 25% protective duties on steel import.
This was reported on Friday, June 1st, by the President of the “Ukrmetallurgprom” association Aleksandr Kalenkov on June 1st.
This decision was expected, however it bears considerable risks for Ukrainian steel production, especially in the context of duties concerning the EU.
“If in the US the supply of steel from Ukraine is 1.3%, then in the EU it is more than 30%. Moreover, a few weeks ago Turkey also announced protective investigation after the introduction of protective measures (duties) by the US,” noted the interlocutor of the agency.
At the same time the head of the association noted that the markets of the EU and Turkey are a priority for deliveries of Ukrainian steel products.
“More than half of all Ukraine’s exported steel products totalling more than $5 billion come under risk due to the protective measures of the EU and Turkey,” stressed Kalenkov.
In turn, the Dneprovsky Metallurgical Plant (DMP) reported that currently there are no changes in the realisation of steel products.
“We closely monitor the situation in connection with the introduction of duties and we are analysing it,” reported the representative of the plant to the agency.
At the same time, the CEO of “Stalkanat-Silur” Sergey Lavrinenko expressed considerable concern about the situation in the market of steel products in the EU, which would also affect Ukrainian metropolitan enterprises.
“There are a lot of things in the EU market. And the US’ duties will affect both us and our steel companies – ArcelorMittal, Metinvest, all suppliers,” stated the CEO.
“This is, in essence, an explosion in the market. What will happen is difficult to assume,” summarised the top-manager.
The press service of the largest in Ukraine Krivoy Rog mining and smelting plant “ArcelorMittal Krivoy Rog” refused to comment. Also no messages arrived from the “Metinvest” group.
The administration of the US President Donald Trump made the decision to introduce protective duties on imports of steel and aluminium from the European Union, Canada, and Mexico. The new duties came into force at midnight on June 1st.
Earlier this year the US introduced import duties – 25% for steel and 10% for aluminium, which already acts for production from China, Russia, Japan, and other countries. Some partners of the US were exempted from the action of the duties up to June 1st.
Ukraine exports about 80% of its made steel products. At the same time the steel companies of Ukraine in January-April, 2018 increased revenues from the export of ferrous metals by 32.1% in comparison with the same period of 2017 – to $3,488,042,000 ($2,640,229,000) – ferrous metals accounted for 22.57% of total export revenues against 19.26% in the first four months of last year. Besides this, in January-April-2018 Ukraine increased the export of metal production by 34% – to $351,363,000. In April it was supplied for $103,907,000.
Ukraine in 2017 increased revenues from the export of ferrous metals by 20% in comparison with 2016 – to $8,665,725,000, import – by 42%, to $1,134,568,000.
Ukraine in 2017 also increased its export of metal products by 30% – to $896,710,000, import – by 25%, to $806,788,000.
Copyright © 2022. All Rights Reserved.