Export shipments of semi-finished steel products from Ukraine showed a significant increase in October compared to September, rising by 46.6 percent or 228,000 mt to 717,000 mt, owing to higher sales of slabs to the international market, while shipments of billets remained reduced.
The major importers of Ukrainian semis were still Italy, Egypt and Turkey. In the November-December period, slab export shipments will stay at high levels, according to sources, taking into account active sales to Turkey following the sharp price drop. In September, when most of October shipment slabs were booked, ex-CIS FOB prices lost $20/mt, while in October they fell by $30-40/mt, according to SteelOrbis’ data.
At the same time, billet shipments from Ukraine will stay at reduced levels at least in November and only some slight improvement is expected for December due to higher international prices. As reported previously, Dniprovsky Integrated Iron and Steel Works (DMK), one of the largest billet suppliers in Ukraine, has decided to keep some equipment, stopped earlier for repairs in September, idled in October-November also in view of the global crisis in the steel market and decreased profitability. DMZ also stopped steelmaking capacities in early October.
In the January-October period, exports of semis from Ukraine totaled 6.077 million mt, up 13.5 percent year on year, according to customs data.