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Brief overview of steel market in Ukraine Selling steel, metals, iron by Ukraine

Ukraine is the world's eighth-largest steel producer and third- largest steel exporter.
Ukraine has abundant and cheap mineral resources for coking coal and iron ore to fully support domestic production.
Prices are expected to remain relatively low compared to global outlook due to the captive nature of the industry.
Major local consumers of steel products are pipe manufacturing (33% of total domestic finished steel products in 2008), machine building (15%), metals and mining (9%), steel hardware (8%) and construction (4%) sectors.
Domestic crude steel consumption remains stable resulting in producers' reliance on export sales.
Significant infrastructure projects in the region are expected to benefit Ukrainian steel producers.
Ukraine's steel market is expected to benefit from major infrastructure projects due to the UEFA Euro 2012 football championship.
Russia has announced significant infrastructure and facility investments for the 2014 Winter Olympics.

Steel production by country

Country
million tonnes
1. China
568
2. Japan
88
3. North America
82
4. Russia
60
5. India
57
6. Korea
49
7. Germany
33
8. Ukraine
30
9. Brazil
27
10. Turkey
25

Domestic Steel Consumption Trends (million tonnes)

2002
5,5
2003
6,4
2004
5,4
2005
7,3
2006
8,6
2007
8,0
2008
7,4
2009
4,9
2010
5,2
2011
5,6

Ukraine's steel sector is a highly concentrated with five companies controlling c.89% of the country's total steel output.
Ukraine is ideally located in close proximity to its main raw materials suppliers (extracted domestically - iron ore, coke, scrap, refractories, flux and ferroalloys) and target markets. Ukraine has a geographically well-diversified sales mix, shipping its products to more than 100 countries (domestic sales c.33% of 2009 volume, CIS accounted for c.16% of 2009 volume, rest of the world accounted for c.51% of 2009 volume).

Ukraine specializes in the production of:
- crude steel and iron;
- semi-finished products (round and square billets, slabs, etc);
- construction profile, like reinforced bars, channels, angles, beams, I-beams, etc;
- hot-rolled ("HR") coils, sheets, plates and strips (mainly for pipe and machine-building industries);
- cold-rolled ("CR") coils, sheets, plates and strips (mainly for automotive and machine-building industries).

Ukraine is a low-cost location. Iron ore can be easily sourced locally for below world market prices. Electricity and natural gas prices are relatively low and incentives given by the Government for the steel industry further reduces tariffs and their volatility. Wages are lower than those of Western Europe. This allows controlling the required quality and quantities and minimizing commodity price exposure.

Should you need any help on import of steel, ferrous and nonferrous metal (iron, bars, wire rod, billets, channel, I-beam, plate, sheet, coils, angle, strip) from Ukraine, feel free to contact us through our web site Ц www.kpl.net.ua Our professional managers are always ready to assist you in this matter. Because we perfectly know Ukrainian market, we can save you a great deal of time and money, help you to make right decision and prevent fraud.

   
 
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