Nachrichten zum ukrainischen Markt

---

Dezember 2007

---

Flat rolled steel exports down by 8.4% to 750,700 tons in November
Exports of steel pipes down by 16.8% to 132,700 tons in November
Exports of unfinished steel products down by 14.6% to 855,800 tons in November
28.12.2007 Source: State Statistics Committee of Ukraine

Iron ore exports down by 5.6% to 2 million tons in November
Manganese ore not exported in November
Manganese ore imports 11% down to 156,700 tons in November
Titanium concentrate exports down by 17.9% to 24,600 tons in November
Alumina exports down by 10.5% to 116,000 tons in November
28.12.2007 Source: State Statistics Committee of Ukraine

Coke imports up by 37.6% to 195,000 tons in November
Coke exports down by 20.5% to 34,000 tons in November
27.12.2007 Source: State Statistics Committee of Ukraine

Pig iron exports down by 15.6% to 143,000 tons in November
Ukraine exported 143,340 tons of cast iron in November, which is 15.6% down on October, the State Statistics Committee reported. The main buyer was Italy, accounting for 58,730 tons or 41% of the total exports. Ukraine's cast iron export grew by 70.5% or by 800,060 tons in January - November 2007 on the like 2006 period, to 1,934,760 tons.
27.12.2007 Source: State Statistics Committee of Ukraine

Exports of ferroalloys up by 0.8% to 97,700 tons in November
Ukraine exported 97,680 tons of ferroalloys in November, which is by 0.8% more month-over-month. January to November saw export growth by 2.6%, by 27,730 tons up to 117,060 tons, year-over-year.
27.12.2007 Source: Ukrainian News Agency

Economy Ministry to increase indicative export prises of silicomanganese
The Economy Ministry of Ukraine intends to increase the indicative export prices of silicomanganese for Japan, South Korea and Taiwan for January 2008 by 10% or by USD 100 per ton, up to USD 1,100 per ton, Serhiy Kudriavtsev, executive director of the Ukrainian Association of Ferroalloy Producers, said. He added that the economy ministry also intends to increase the January 2008 export indicative prices of silicomanganese for the countries of the Commonwealth of Independent States from USD 1,050 per ton to USD 1,110 per ton, and to divide the prices of ferrosilicon 65, having set them at the rate of USD 950 per ton for Europe, and USD 830 per ton for CIS member-countries. The December prices of ferrosilicon 65 were set at USD 750 per ton.
26.12.2007 Source: Ukrinform

Ukrainian machine-building developing in priority rates
According to the economy ministry, the production growth rates of Ukrainian machine-building companies reached 28% in January - November, which listed Ukraine, on a par with Germany, Japan, the US, France and South Korea, among the world's front-runners in engineering industry development. In all, products worth USD 7.2 billion were put out in 11 months, which exceeds the showing of traditional leaders of industrial production - oil processing and gas extraction industries. "Such an unprecedented result actually means that the industry, which for a long time was running on technological minimum, is now getting revived. We are at last stopping to play just a raw export role for the European Union and Russia, and are developing production of finished goods," says Valeriy Vorobiov, director of the center for conversion and new technologies in machine-building.
26.12.2007 Source: Ukrinform

Ukraine ups gas price ceiling for industry 30%
Ukraine's government has raised the gas price ceiling for industrial consumers by 30% for next year following a price increase for imported gas likely to intensify pressure on local producers and fuel inflation. The government said in a statement on its web site on Tuesday it had allowed a rise in the ceiling to USD 185 per 1,000 cubic metres (tcm) from USD 143 in 2007. The news follows an agreement signed with Russian gas export monopoly Gazprom , under which Ukraine is to pay USD 179.50 per tcm from next year against USD 130 at the moment. Economists say the increase will hit the competitiveness of Ukrainian producers, especially the chemicals and steel sectors, and fuel inflation.
25.12.2007 Source: Reuters

Ukraine reduces scrap metal exports by 6% in January-November
Ukrainian ferrous scrap merchants exported 647,300 tonnes of scrap in the first eleven months of 2007, 6.1% less than a year earlier. The head of the Ukrainian Metal Scrap Association, Ivan Zaitsev said that the country exported 29,800 tonnes of scrap metal in November. He said most scrap is sold on the domestic market to Ukrainian steelmakers, which plan to buy about 8 million tonnes of scrap in 2008.
21.12.2007 Source: Interfax

Ukraine ranks eight in world rating of steel producers
Ukraine remained the eighth largest of the world's 67 main steel producing countries in November, and it increased steel production by 4% year-over-year to 3.544 million tonnes. Along with Ukraine, the top ten steelmakers in November 2007 were China (39.691 million tonnes, a 4.3% rise), Japan (10.114 million tonnes, a 1.1% rise), the United States ((8.04 million tonnes, a 8.5% decline), Russia (5.877 million tonnes, a 2.8% rise), India (4.565 million tonnes, a 7.8% rise), South Korea (4.165 million tonnes, a 0.8% rise), Germany (4.021 million tonnes, a 2.4% fall), Brazil (2.872 million tonnes, a 6.2% rise) and Italy (2.815 million tonnes, the level of November 2006). In November alone, Ukrainian producers cut steel output by 83,000 tonnes compared to October 2007. A fall in steel production compared to the previous month was registered in all of the top ten countries.
21.12.2007 Source: International Iron and Steel Institute (IISI)

Ukraine to up export quota on metal supply to EU
Ukraine's export quota on supply of metal produce to the EU in 2008 will up to 1.35 M. tons. Ukraine reached an agreement with EU in June on trade of some steel products, which envisages upped export quotas by 31.4% from 1,004,500 tons to 1,320,000 tons. Ukraine expects the EU to lift quotas on steel export after Ukraine's' accidence to the WTO.
20.12.2007 Source: Ukrinform

Ukraine ups iron ore exports 2.6% in 11 months
Ukraine raised iron ore exports tentatively 2.6% year-on-year in January-November to 18.759 million tonnes. Iron ore concentrate exports grew 12.6% to 4.166 million tonnes and pellet exports went up 2.4% to 8.097 million tonnes, however sintering ore exports fell 2.9% to 6.496 million tonnes. Ukraine exported 1.982 million tonnes of iron ore in November, including 660,000 tonnes of concentrate, 662,000 tonnes of sintering ore and 660,000 tonnes of pellets. Ukrainian steelmakers increased imports of iron ore commodities by 72.4% year-on-year to 3.157 million tonnes in the 11 months.
17.12.2007 Source: Ukrrudprom

Real GDP growth reported at 7.2% for first 11 months of 2007
Ukraine saw real GDP growth of 7.2% in January-November 2007 compared to the same period of 2006. GDP grew 6.9% in November 2007 compared to November 2006.
14.12.2007 Source: Ukrainian State Statistics Committee of Ukraine

Ukraine to cancel all export duties in trade with EU after creating free trade area with European Union
Ukrainian Economics Minister Anatoliy Kinakh insists that Ukraine must not make concessions in talks with the European Unions in export duties for the sake of soon accession to the WTO. Kinakh noted that Ukraine has already aired its position to the EU about its readiness to cancel export duties in the trade with the EU after creating a free trade area between Ukraine and the EU. The minister said that to the date Ukraine has met all obligations for accession to the WTO except of the regulation of the issue with the EU for export duties. According to him, on December 17 and 20 the WTO council will sit into Ukraine's accession to the organization.
14.12.2007 Source: Ukrinform

Some Ukrainian steelmakers might post losses in Q1 of 2008
Some Ukrainian steel companies might operate at a loss in the first quarter of 2008 due to higher energy prices, shortages of coke and an increase in prices for iron ore commodities, the head of industry association Metallurgprom, Vasyl Kharakhulakh said. Companies that are integrated into larger groups will have fewer problems with higher prices, while independent plants will be impacted, he said at a mining and metals industry conference on Wednesday. Natural gas prices for steel plants will be between USD 270 and USD 277 per 1,000 cubic meters. Production costs for steel products will increase in 2008, Kharakhulakh said. Industrial association Metallurgprom is one of the organizers of the Metal-Forum of Ukraine.
14.12.2007 Source: Interfax

Price for Ukrainian metal to rebound by 30%
Ukraine will face new price hikes for metal. Ukraine's leading metal producer "MetInvest" announced about intention to increase price by 22 to 25%. And so, we will preserve 2007's marge of the enterprise, Sales Director of the "MetInvest" Andriy Parkhomchuk said. The Ilich Mariupol Metallurgic Plant and Industrial Union of DONBASS also announced their intentions to reconsider prices toward upper points. Experts predict prices to grow by 30%. We are hold the relevant calculations now, "Mariupol Metallurgic Plant" CEO Volodymyr Boyko said. "Metallurgprom" Director General Vasyl Kharakhulakh predicted gas price for metallurgic plants at USD 270 to 277 per 1,000 cu m. Notably, Ukraine and Russia agreed on the 179.5 USD per 1,000 cu. m in 2008.
14.12.2007 Source: Interfax

Yuschenko asks government to examine situation in country's aluminum industry
Ukrainian President Viktor Yuschenko has sent a letter to Premier Viktor Yanukovych with the request that a governmental commission examine the situation in the country's aluminum industry. The president asked the Cabinet of Ministers to take measures to make the work of OJSC Zaporizhia aluminum mill profitable, so as not to stop its work, drawing particular attention to the economic justification for the electricity tariffs charged to this enterprise. Yuschenko also urged that the cabinet analyze the implementation of the state program on developing and reforming the mining and metallurgical sector until 2011, which was adopted by the Cabinet of Ministers in 2004, with particular focus on the development of the major kinds of production of non-ferrous metals.
14.12.2007 Source: Interfax

Ukraine ups production in steel pipes by 2.1%
Steel pipes production in November downed by 1.1%, numbering 2,250 tons month-over-month down to 194,460 tons. January to November 2007 saw production of steel pipes by 2.1% more year-over-year. In 2006 production of steel pipes upped by 14.4% to 2,601,950 tons year-over-year.
14.12.2007 Source: Ukrinform

EBRD presents program of enhancing efficiency of energy saving in Ukraine
The European Bank for Reconstruction and Development presented a program of enhancing the efficiency of energy saving in Ukraine at a conference in Dnipropetrovsk. The program envisages financing in general in Ukraine to the tune of 100 million EUR. Two Ukrainian banks pose as mediators in this process, which will credit enterprises for investing energy saving and energy efficiency.
13.12.2007 Source: Ukrinform

Metal consumption in Ukraine up 36%
Metal consumption in Ukraine upped by 36% and totals 200 kg per person, director of the state scientific and research institute Yevhen Kovalev said. Income from metal export over the last 11 monthes upped by 34% to USD 8 billion. According to Kovalev, 2007 metal production will exceed the last year's one.
13.12.2007 Source: Ukrinform

Coke production ups by 5.9% in 11 months
Coke production in Ukraine in January to November ups by 5.9% and totaled 18,327,000 tons.
The Ukrkoks experts predict demands of metallurgists at over 19.5 million tons on coke.
13.12.2007 Source: Ukrinform

Cut in coal extraction by Zasyadko mine would affect Ukrainian metallurgy, says expert
A fall in coal extraction by the Zasyadko mine, which annually extracts over 3.3 million tonnes of coking coal, or its complete shutdown, would lead to an increase in coal shortages, which would affect Ukrainian metallurgy, according to director of coal and coke division of Metinvset-Holding Ltd., Volodymyr Husak.
"A cut in extraction or a shutdown of the Zasyadko mine would affect the whole Ukrainian metallurgical sector and the country's economy. The losses could be millions of dollars. I think that every one would agree that lives of people are more important than financial figures. The main thing is to save the lives of miners," he said. Zasyadko mine supplied coking coal to all coking plants of Ukraine, including Metinvset companies. The shutdown of this mine would not lead to the shutdown of the group's coking companies, as Zasyadko mine is a large but not the main supplier for Metinvest, its share in total coal consumption is around 7-8%.
12.12.2007 Source: Interfax

EBRD to invest EUR 700-800 million in projects in Ukraine in 2008
The European Bank for Reconstruction and Development (EBRD) intends to invest EUR 700-800 million in projects in Ukraine in 2008. "We were guided by the volume of investment we are to make this year - about EUR 700 million. Well, it will be around it next year," Anton Usov, the spokesman for the Kyiv office of the EBRD, said. As reported earlier, late in September, the EBRD said it would invest up to USD 350 million in the financial sector of Ukraine in 2008.
11.12.2007 Source: Ukrainian News

Arcelormittal announces price increases for long products in Q1'08
Strong demand and ongoing pressure from rising raw material and billet prices have led to increasing rebar and wire rod prices in Asia and Middle East. Due to continuing robust steel market fundamentals, ArcelorMittal announces a further price increase of $ 30/ton for Long steel products for all new orders as of Jan 1st 2008 out of Black Sea for Turkey, Mediterranean, Middle East & North Africa (MENA) destinations. This price increase comes as a result of ongoing strength in the macroeconomic environment in MENA, CIS and emerging Asia regions. Demand for steel products remains strong, with financial market jitters limited to mature Western markets. Billet prices into the region have risen over the past few weeks on strong demand and shifting Trade flows. The strength of the macroeconomic environment in MENA is supported by continuing high oil prices. The construction sector is particularly robust with a significant number of projects under construction and 2008 growth expected at a high rate similar to that of 2007.
Narendra Chaudhary, CEO of ArcelorMittal Krivy Riy, Ukraine, said: "The strong demand is untypical for this time of the year but clearly indicates that we are looking to a very healthy year 2008. We believe that trade flows are on the way to change and Ukraine will benefit from this."
10.12.2207 Source: ArcelorMittal

Ukraine steps up ferroalloy output
Ukraine increased ferroalloy production during eleven months of 2007 by 8.9% up to 1.39 million tons versus the relevant period of 2006.
Ferroalloy output rose by 1.1% to 138,600 tons in November.
06.12.2007 Source: Ukrinform

Ukrainian entrepreneurs take Russian gas price hike in stride
Ukrainian enterprises have taken the increase in the price of Russian gas to USD 179.5 per 1,000 cu. m. in their stride. Notably, Chairman of the Management Board of the Mariupol-based Ilyich iron and Steel Works Volodymyr Boiko believes that the new price will not significantly affect the cost of the plant's produce. "The price of gas accounts for three percent of the cost of metal. Moreover, it will not exceed 1.5 percent when most enterprises transit to the pulverized coal injection technology next year," he said. Vice-president of the Association of Chemical Enterprises Petro Burliayev stated that the enterprises will not be affected by the price hike. "The producers will simply raise their prices in Ukraine by 17-25 percent. As for export prices, they have grown already - the world manufacturers of ammonia have hiked their prices by 30 percent owing to the increase in prices of natural gas this year," he said.
05.12.2007 Source: Ukrinform

Ukraine studying appropriateness of importing coal from Australia
Ukraine is studying whether it will be appropriate to import coal from Australia. Acting Prime Minister Viktor Yanukovych announced this at a Cabinet of Ministers meeting. "Coal will most likely have to be delivered from Australia because it has a more or less acceptable price there," Yanukovych said. According to him, Ukraine presently mines about 80 million tons of coal per year whereas at least 100 million is presently needed to maintain the country's energy balance and meet industrial requirements. He said that the nearest exporters of coal to Ukraine are Russia and Poland. However, he stressed that Ukraine should strengthen its own coal mining volume rather than dependency on imports. Yanukovych also expressed the belief that it is inappropriate to approve a decision on closure of coal mines and reduction of coal mining.
05.12.2007 Source: Ukrainian News Agency

Ukraine ups pipe production
Ukraine has upped tube production as high as up to 2.44 million tons, which is by 1.1% more. Main tube producers in Ukraine are the Nizhne-Dniprovskyi Pipe Plant, Khartzyskyi Pipe Plant, Nikopolskyi Tube, Dnipropetrovsk Tube Plant and "Yutist". The highest production output over the last 11 months have been registered at the Nikopolskyi Tube Plant at 169,600 tons.
05.12.2007 Source: Ukrinform

Ukraine must boost coal output
Ukraine needs to develop coal production and rebuild coalmines, Ukrainian Prime Minister Viktor Yanukovych said at a Cabinet meeting on Wednesday. Ukraine needs to increase coal output to 100 million tonnes per year from the current 80 million tonnes and thus should not reduce coal production or close mines, he said. "The coal industry plays a very important role in the Ukrainian economy. We cannot shut down mines altogether - this would be a blow to the economy. On the contrary, we need to develop coal production. The current level of 80 million tonnes is not enough since we already need 100 million tonnes to ensure the country's energy supplies, and output should be higher taking into account the growth in production," he said.
05.12.2007 Source: Interfax

Ukraine ranked second in CIS for industrial growth
Ukraine is second in the CIS for industrial growth with 11% scored, the CIS International Committee of Statistics told. Ukraine follows Azerbaijan and Turkmenistan, sharing the first place. The CIS industrial production grew by 7% in January to October 2007 year-over-year.
04.12.2007 Source: Ukrinform

Ukraine uses almost 89% of EU rolled steel quota in 11 months
Ukrainian metallurgical enterprises received licenses in January-November 2007 to export 1,173,746 tons of licensable rolled steel to the EU, which is 88.92% of the annual quota imposed by the EU. Ukraine signed an agreement in June on trading in certain steel products with the EU, according to which quotas on licensable Ukrainian steel exports to the EU are raised by 31.4% in 2007, i. e., from 1,004,500 tons to 1,320,000 tons.
04.12.2007 Source: Ministry of Economy of Ukraine

Ukraine uses almost 14% of Russian rebar quota
Ukrainian steel mills in January through November 2007 obtained licenses to ship 15,421 tonnes of rebar, or 13.77% of the annual quota for the current year (112,000). 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.
04.12.2007 Source: Ministry of Economy of Ukraine

Ukraine uses 43.11% of quota for steel plate shipments to US over 11 months
Ukrainian metallurgical enterprises received licenses in the first eleven months of the year 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.
04.12.2007 Source: Ministry of Economy of Ukraine

Ukrainian coke production grows 6% in January-November
Ukraine increased production of 6%-moisture metallurgical coke by 5.9% year-on-year to 18.327 million tonnes in the first eleven months of 2007, including 1.69 million tonnes in October, according to preliminary figures. Coke producers managed to increase output despite the shortage of coking coal caused by growing demand, the head of industry association Ukrkoks, Anatoliy Starovoit reported. However, due to accidents at the Zasiadko mine, which produces 31% of Ukraine's Zh brand coking coal, the shortage of coal for coke production has worsened, he said.
04.12.2007 Source: Interfax

Ukraine cuts coal extraction
Ukraine downed coal extraction by 5.4% in January to November 2007 to 69 million tons year-over-year, the Coal Industry Ministry's press service reported. Coking coal extraction fell by 6.3%, to 26.13 million tonnes, and energy coal extraction decreased by 4.8%, to 42.888 million tonnes. Coal extraction was 5.847 million tonnes in November alone, which is 10.7% down year-on-year. Ukraine's enterprises cut coking coal extraction by 5% in November, to 2.436 million tonnes, and energy coal extraction by 13.8%, to 4.05 million tonnes.
04.12.2007 Source: Coal Industry Ministry of Ukraine

Metallurgist group asks president to prevent rail tariff increase
The Federation of Ukrainian Metallurgists has asked President Viktor Yushchenko to prevent another increase in rail freight tariffs planned by the Transportation Ministry and the state railroad administration Ukrzaliznytsia. The ministry is pushing for a rail tariff increase for selected types of freight effective Jan. 1, 2008. It is proposing to equalize prices for shipments of iron ore, iron ore concentrate, coke, mineral fertilizer and oil products in and out of the country and on domestic routes. As a result, tariffs for rail shipments inside Ukraine will increase by 83.5% for iron ore commodities and 22.7% for coke, which would cost steel companies an additional UAH 841 million and UAH 134 million, respectively, in 2008. Additional expenditures on shipment of pig iron and ferrous metal rolled products would total UAH 145 million in 2008.
03.12.2007 Source: Ukrainian Journal

Ukraine ups steel roll output 5% in 11 months
Ukraine's steel industry increased finished roll output 5% year-on-year in January-November to 32.956 million tonnes. Ukraine produced 39.114 million tonnes of crude steel, up 5%, and 32.566 million tonnes of pig iron, up 9% year-on-year.
Steel pipe production rose 1% to 2.439 million tonnes.
Metalware output was flat at 398,000 tonnes. Scrap deliveries to Ukrainian steel mills grew 4% year-on-year to 6.401 million tonnes.
Iron ore concentrate production grew 8% to 55.782 million tonnes and prepared iron ore - 6% to 65.956 million tonnes, including pellets - 7% to 20.434 million tonnes and sinter ore - 5% to 45.522 million tonnes. Crude iron ore production rose 6% to 70.722 million tonnes.
03.12.2007 Source: Ministry of Industrial Policy of Ukraine

---

November 2007

---

Ukrainian metallurgists to register their products in accordance with European ecological norms
In line with the chemical industries of Ukraine metallurgists started registration of their products meeting norms of the new European ecological laws REACH. The reception of pre-registration applications from producers on their products' correspondence to new norms will start on June 1, 2008 and will last though December 1, 2008.
30.11.2007 Source: Ukrinform

Ukrainian steel mills may attract USD 3.55 billion by listing their shares at international stock markets
Ukrainian companies involved in ferrous metallurgy may attract up to USD 3.55 bn by listing their shares (IPOs and private placements) on the international stock markets in 2008-2009, analyst of the Troika Dialog Ukraine company Roman Zakharov says. According to him, companies of the fuel and energy sector and those of the consumer sector have the second best chance of attracting foreign investments at the stock markets with an estimated USD 750 million yield in 2008-2009. Ukrainian real estate companies may attract as much as USD 350 million of investments and commercial banks USD 150 million, the expert maintains. Machine building enterprises stand to net USD 50 million as a result of IPOs and private placements.
30.11.2007 Source: Troika Dialog Ukraine

Ukraine might face coke shortages in 2008
Ukrainian steel companies will import about 2 million tonnes of coke this year, but in 2008 imports will decline due to growing global demand, the head of industry association Ukrkoks, Anatoliy Starovoit said. "In 2008 we will not be able to import 2 million tonnes of coke," he said, adding that Ukraine would also import about 7 - 9 million tonnes of coking coal this year. Ukrkoks reckons the problem of coking coal shortages could be resolved by diversifying imports and building ports for large ships. Ukrkoks projects that, due to shortages of raw material, annual coke production in Ukraine will not exceed 17.5 million tonnes in 2008 and onward, while steelmakers will require more than 19.5 million tonnes next year.
29.11.2007 Source: Interfax

Ukraine ready to cancel export fees after agreement on free trade area with EU takes effect
Ukraine is ready to cancel export fees after an agreement on free trade area with the EU takes effect, First Vice Prime Minister, Finances Minister Mykola Azarov told journalists. As he stressed, there is no the same understanding of the cancellation of export fees among WTO members. "The EU stands on that position, but such influential member of the WTO, as Argentina sticks to opposite stance," Azarov said. The WTO Charter and other documents of the WTO don't require the cancellation of fees. Azarov said the EU's demand about the cancellation of fees were "an artificial obstacle on the way of Ukraine's accession to the WTO." He expressed his hope that it will be the last obstacle. The European Union posed with the last demand regarding Ukraine's accession to the World Trade Organization, WTO official representatives announced on November 27 in Geneva. With a view of becoming the 152nd member of the WTO, Kyiv should meet the requirement of Brussels regarding the revision of the regulation of export fee.
29.11.2007 Source: Ukrinform

Exports of steel pipes up by 6.8% in October
In October, Ukraine piled up a steel pipes export by 6.8% or by 10.22 thousand tons up from September to 159.47 thousand tons, the State Statistics Committee informed. In January-October 2007, the steel pipes export increased by 4.9% or by 81.64 thousand tons against January-October 2006 to 1,747.01 million tons.
29.11.2007 Source: Ukrinform

Yushchenko headed all-Ukrainian meeting on energy saving
President Victor Yushchenko headed all-Ukrainian meeting on energy saving in mining and machine-building industries in Alchevsk. The President recalled that energy efficiency level of Ukraine's economics is 2-4 times lower than in development countries. The situation threatens energy security, reduces welfare of Ukraine's citizens and leads to low competitive capacity of Ukraine's enterprises production on foreign markets. According to the President, there are examples of energy efficiency approach. The Industrial Union of Donbas and Mittal Steel Kryvy Rih demonstrate such examples. They find opportunities and resources to invest in technical and technological modernization of their enterprises, enhancing energy efficiency and ecological safety of production.
27.11.2007 Source: President`s press-office / NRCU

Steel mills face coke shortage due to lack of coal
Dnipropetrovsk-based Ukrkoks (Ukrainian Coke) association has forecast further shortages of coke for domestic steel mills due to the growing deficit of coking coal extraction. According to the release, by-product-coking plants over the past years have seen serious shortages of coking coal. Extraction of Ukrainian coking coals is falling, and soon the tendency will strengthen for several reasons, including the exhaustion of deposits and an increase in work safety requirements. Simultaneously, a fall in coking coal imports from Russia has been seen, where Ukrainian by-product-coking industry traditionally bought extra coking coal. Coke producers are not able to provide enough coke for steel makers' needs. The association says the situation could be tackled with the diversification of coal imports and the building of ports for large-capacity ships. The statement to the effect was made by Director General Anatoliy Starovoyt of the UkrKoks. The way-out is to increase and diversify the coking coal import, "not instead of the Ukrainian coal, but in addition to it".
27.11.2007 Source: Ukrainian Journal

Coke exports up by 43.1% to 43,000 tons in October
Coke imports up by 19.7% to 142,000 tons In October
27.11.2007 Source: State Statistics Committee of Ukraine

Russia decides not to impose antidumping duty on high-carbon ferromanganese from Ukraine
Economics Minister Anatoliy Kinakh has reported that based on the outcomes of the antidumping investigation conducted by the Russian Ministry of Economic Development and Trade, Russia will impose no anti-dumping duty on Ukraine's ferromanganese imports. In the nine months of 2007, Ukraine's trade turnover with the Russian Federation reached USD 24.1 bn, rising by 31.4 percent over the same period last year. The exports of Ukrainian goods and services reached USD 11.6 bn, rising 1.5 fold. The negative trade balance was reduced by an unprecedented USD 1.5 bn. "On the whole the trade turnover between Ukraine and Russia is expected to exceed the USD 30-bn mark this year. This is the highest indicator in our trade and economic relations in recent years," the Economics Minister concluded.
27.11.2007 Source: Ukrinform

Iron export falls 6.7% in October
In October the export of iron decreased by 6.7% or by 12,100 tons versus September up to 169,820 tons, the State Statistics Committee reported. The main purchaser of Ukrainian iron in October was Italy, which imported 90,380 tons of iron or 53.2%. During January - October 2007 the export of iron grew by 86.6% or by 831,480 tons versus January - October 2006 up to 1,791.43 million tons or by 524,860 million USD.
27.11.2007 Source: Ukrinform

Ukrainian metallurgical enterprises step up production by 9.9%
Ukrainian metallurgical enterprises during January - October 2007 increased ready products manufacture by 9.9%, the State Statistics Committee reported. In particular, the enterprises smelted 30.1 million tons of iron, 24.1 million tons of steel without semi-ready products and 12.1 million tons of semi-manufactured products, 20.5 million tons of ready rolled metal and 2.4 million tons of tubes and hallow profiled from ferrous metals.
26.11.2007 Source: Ukrinform

Ukraine still eighth biggest steelmaker in world in October
Ukraine remained the eighth largest of the world's 67 main steel producing countries in October, and it increased steel production by 3.6% year-over-year to 3.627 million tonnes. The rating is published by the International Iron and Steel Institute (IISI). Along with Ukraine, the top ten steelmakers in October 2007 were China (42.922 million tonnes), Japan (10.372 million tonnes), the United States (8.51 million tonnes), Russia (6.188 million tonnes), India (4.631 million tonnes), South Korea (4.304 million tonnes), Germany (4.192 million tonnes), Italy (2.908 million tonnes) and Brazil (2,899 million tonnes). In October alone, Ukrainian producers increased steel output by 116,000 tonnes compared to September 2007. A rise in steel production compared to the previous month was registered in all of the top ten countries.
23.11.2007 Source: International Iron and Steel Institute

USA and EU cease anti-dumping investigations against Ukrainian silicomanganese and flat products producers
Europe and the USA ceased anti-dumping investigations against Ukrainian producers of silicomanganese and flat products, Ukrainian Economy Minister Anatoliy Kinakh said. The EU's stopping anti-dumping investigation against Ukraine will allow exporting 190-200 million USD worth products annually to EU markets, he said. Still, he added, the government is still focused to cease anti-dumping investigation against seven Ukrainian products by EU countries, these are seam and seamless tubes, carbamide, wire cable, etc. Talking about relationa with the EU, Mr Kinakh said the share of Ukraine's trade with the EU grew up to 33.4% and 76% of all directs foreign investments come from EU countries.
23.11.2007 Source: Ukrinform

Ukraine and USA agree on ceasing anti-dumping investigation of Ukrainian cutting rolled metal
Ukraine has completed negotiations with the USA on ceasing the anti-dumping investigation into Ukrainian cutting rolled-metal, Ukrainian Economics Minister Anatoliy Kinakh said Friday. According to him, the stop of investigation of the Ukrainian product will allow the country exporting up to 150,000 tons of cutting rolled-metal to the USA by October 30, 2008 without anti-dumping sanctions.
23.11.2007 Source: Ukrinform

Ukraine's crude steel output expected to rise 4% to 42.7 million tonnes in 2007
UkrRudProm an association uniting major metal producers reported that Ukraine's output of crude steel is expected to increase 4% to 42.7 million tonnes in 2007 up from 40.8 million tonnes in 2006. The association said Ukraine also plans to boost pig iron production this year by 8% to 35.57 million tonnes and to increase rolled metal output by 5% to 36.06 million tonnes.
22.11.2007 Source: Ukrainian Journal

China encourages its companies to invest into Kiev
The capital of Ukraine has been identified as a priority city for investments by Chinese companies. This was announced during a roundtable involving representatives of major transnational companies that took place in Beijing. Kyiv Deputy Mayor Serhiy Rudyk received a certificate that distinguishes the Ukrainian capital as one of the most suitable cities for investment. The ceremony also hailed the best industrial areas and the most competitive enterprises of China. The event was organized by the parliament of China and the UN agencies in that country. As of November 16, the trade turnover between Ukraine and China totals 4 bn USD.
19.11.2007 Source: Ukrinform

Ukraine ups import of iron ore
The metallurgic enterprises of Ukraine in January to October 2007 up import of iron ore by 74.2% year-over-year, according to the UkrRudProm. Import of iron concentrate in January to October 2007 grew by 23.9% to 1,180,000 tons, while import of sintering ore and pellet upped by 69% and by 700%, respectively. In October Ukraine imported 424,860 tons of iron ore, which was 21.5% increase versus September.
16.11.2007 Source: Ukrinform

Production of ferroalloys downs in Ukraine
Production of ferroalloys has downed by 9.5% year-over-year to 3.24 M. tons over the latest 10 months of 2007, the Ukrainian Association of Ferroalloys Producers said. According to Executive Director of the Ukrainian Association of Ferroalloys Producers Serhiy Kudriavtsev, the slash resulted from upped indicative prices for export of ferroalloys. The Economy Ministry upped indicative prices by 100 USD last month, Kudriavtsev noted.
13.11.2007 Source: Ukrinform

GDP 7.0% up in October
In October 2007, real GDP rose by 7.0%, compared to October 2006 to UAH 68,680 million. In January-October 2007, the GDP grew by 7.3%, compared to January-October 2006 to UAH 561,112 million. In September 2007, the GDP increased by 6.2%, compared to September 2006 to UAH 72,982 million.
In 2006, the real gross domestic product rose by 7.1%, compared to 2005 to UAH 537,667 million. The Cabinet of Ministers forecasts GDP growth of 6.5% in 2007. The Cabinet of Ministers endorsed major macroeconomic indicators of Ukrainian development for 2008, including GDP growth of 7.2% and inflation of 6.8%.
13.11.2007 Source: State Statistics Committee of Ukraine

Ukraine's industrial output up 13.7% in October, 11% over 10 months
The pace of industrial output growth in Ukraine was 13.7% year-on-year in October 2007, whereas in January through October it grew by 11%. Production in the mining sector grew by 2.9% year-over-year, while a 7.3% rise was seen in the ore-mining sector and a 0.2% rise in oil and gas production. Coal and peat production fell by 3.5%. A 12.7% rise was seen in the processing industry in January through October 2007. Coke output soared by 5.7%. In January through October 2007, a 9.9% rise was seen in the metallurgical sector, which is 0.6% less than in January through September 2007. Cast iron, steel and ferroalloy output growth was 10.6%, and pipe production grew by 3.7%. Car building growth was 27.4% over the ten months 2007.
10.11.2007 Source: State Statistics Committee of Ukraine

Ukrainian coke production grows 5.7% in January-October
Ukraine increased production of 6%-moisture metallurgical coke by 5.7% year-on-year to 16.622 million tonnes in the first ten months of 2007, including 1.761 million tonnes in October. Coke production has declined in recent months due to shortages of coking coal, the head of industry association Ukrkoks, Anatoliy Starovoit told. He said Ukraine would import about 9 million tonnes of coking coal this year, about the same as in 2006. At the same time, coke imports by steel companies have increased. Coal and coke are imported primarily from Russia, Starovoit said.
07.11.2007 Source: Interfax

Ukrainian pipe production up 3% in January-October
Ukraine increased production of ferrous metal pipes by 3% year-on-year to 2.245 million tonnes in the first ten months of 2007, including 204,500 tonnes in October. Pipe makers have been working fairly steadily since the beginning of the year, though growth has slowed in the second half of the year. Ukrainian Metals Traders Association president Andriy Fedosiyiv said earlier that pipe production was growing largely on the back of the favorable situation on foreign markets.
05.11.2007 Source: Ukrtruboprom

Ukraine uses over 81% of EU rolled steel quota in 10 months
Ukrainian steel mills in January through October 2007 obtained licenses to ship 1.074 million tonnes of rolled steel, or 81.34% 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 151,066 tonnes of SA1 category flat roll in coils to the EU, or 79.51% of the quota for this commodity; 344,558 tonnes of SA2 uncoiled flat roll, or 88.35% of the quota; and 106,134 tonnes of SA3 flat roll, or 75.s81% of the quota. They were licensed to export 49,593 tonnes of SB1 semi-manufactures and shapes and sections, or 99.19% of the quota; 183,915 tonnes of SB2 commodities, or 94.32% of the quota; and 238,359 tonnes of SB3 semi-finished and wire rods, or 67.14% of the quota.
03.11.2007 Source: Ministry of Economy of Ukraine

Ukraine receives half of Russian cold-rolled steel quota
Ukrainian steelmakers have received licenses to export 100,000 tonnes of cold-rolled steel products that are subject to licensing to Russia, 50% of the annual quota. Ukraine's Cabinet approved the amount of the quota until June 30, 2010. The Economics Ministry and Russia's Economic Development and Trade Ministry signed a three-year agreement to regulate shipments of cold-rolled flat products from Ukraine to Russia in June. The agreement went into effect on July 1, 2007. According to a Ukrainian government resolution, the quota is 200,000 tonnes for this year (from July 1); 205,000 tonnes from July 1, 2008 to June 30, 2009; and 210,000 tonnes from July 1, 2009 to June 30, 2010. The Russian ministry launched an anti-dumping investigation into imports of cold-rolled flat products from Ukraine in July 2006 following complaints by Russian steel majors Magnitogorsk Iron & Steel Works (MMK), Novolipetsk Steel (NLMK) and Severstal. In July of this year, the ministry stopped the investigation into the Ukrainian imports, primarily from the Ilyich Iron & Steel Works of Mariupol and Zaporizhstal. The annual quota is 175,000 tonnes for Zaporizhstal and 25,000 tonnes for Ilyich; the corresponding quarterly quotas are 43,750 tonnes and 6,250 tonnes.
03.11.2007 Source: Ministry of Economy of Ukraine

Ukraine uses 43.11% of quota for steel plate shipments to US over 10 months
Ukrainian metallurgical enterprises received licenses in the first ten months of the year 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.
03.11.2007 Source: Ministry of Economy of Ukraine

Ukraine reduces coal production 4.8% in January-October
Ukraine reduced coal production by 4.8% year-on-year to 62.501 million tonnes in the first ten months of 2007. Production of coking coal fell 6.5% to 23.671 million tonnes, and output of steam coal dropped 3.7% to 38.830 million tonnes. The country mined 6.329 million tonnes of coal in October, 2.2% less year-on-year. Production of coking coal rose 1.3% to 2.455 million tones, while steam coal output fell 4.3% to 3.874 million tonnes. Ukrainian coalmines fulfilled 99% of the ministry's coal production target for the ten months, including 113.6% for coking coal and 91.8% for steam coal.
03.11.2007 Source: Coal Industry Ministry of Ukraine

World Bank improves 2007 GDP forecast for Ukraine to 6.7%
The World Bank expects that GDP growth in Ukraine in 2007 will be 6.7%, while earlier the forecast was 6%. According to a World Bank report, the index of consumer prices is expected to grow by 12.5% in 2007, though the bank's previous forecast was 9.7%. According to the bank, in 2008, 2009 and 2010, Ukraine's GDP is expected to grow by 5.5%, 5% and 5% respectively. Ukraine's real GDP growth was 7.1% in 2006, while in 2005 it was 2.7%. The government forecasts a GDP growth slowdown to 6.5% in 2007, along with a fall in inflation from 11.6% to 7.5%.
02.11.2007 Source: Interfax

Ukrainische Stahlproduktion legt 2007 zu
Die Ukraine hat im Zeitraum von Januar bis Oktober 2007 genau 35,570 Mio t Stahl erzeugt. Dies entspricht einer Zunahme von 5% im Vergleich zum gleichen Vorjahreszeitraum, teilte das Ministerium für Industriepolitik am Freitag mit. Die Produktion von Stahlrohren legte im Berichtszeitraum um 3% auf 2,245 Mio t zu, hieß es weiter. Insgesamt wurden 29,614 Mio t Eisen erschmolzen und damit 9% mehr als im Vorjahreszeitraum. Der Walzstahlausstoß nahm um 5% auf 29,915 Mio t zu, hieß es weiter.
Die Koksproduktion in der Ukraine erhöhte sich auf um 6% auf 16,622 Mio t. Die Stahlschrottbelieferung an die Hüttenwerke des Landes stiegen in den ersten zehn Monaten des Jahres um 4% auf 5,793 Mio t. Die Eisenerzförderung nahm im Berichtszeitraum um 6% auf 64,309 Mio t zu. Bei der Produktion von Eisenerzkonzentrat war eine Zunahme um 8% auf 50,785 Mio t zu verzeichnen.
Der generelle Anstieg der Produktionszahlen in der Eisen- und Stahlindustrie der Ukraine in diesem Jahr ist vor allem auf die Tatsache zurückzuführen, dass in den ersten Monaten des Jahres 2006 eine ungewöhnlich kalte Witterung herrschte und die Erdgaslieferungen an die Hochöfen wegen der hohen Preisforderungen des Lieferanten Russland begrenzt waren.
02.11.2007 Source: Dow Jones News

---

Oktober 2007

---

17 foreign companies interested in developing Volyn copper deposit
Seventeen foreign companies are interested in developing copper deposits in Volyn, in particular, the Rafaliv copper deposit (situated in Volyn and Rivne regions), which could yield an estimated 25.1-25.8 million tonnes of copper. Preparing the deposit for industrial exploitation will require investments of about USD 50 million. The source also reported that the investor company for deposit exploration and development will be chosen via tender, after it submits investment projects with banking feasibility studies and approval. The Volyn copper district includes four deposits with copper, gold, silver and platinum. Industrial development of these deposits will permit to completely cover Ukraine's domestic copper demand and also allocate some of the produce for export.
25.10.2007 Source: Interfax

Ukraine and USA agree on 150,00 tons of Ukrainian rolled metal supply in 2008
Ukraine has agreed with the USA on the supply of 150,000 Ukrainian rolled metal to the US market in 2008, Ukrainian Economics Minister said, by way of commenting on his talks in the USA. According to Kinakh, the parties decided to extend the agreement on suspending anti-dumping investigation on some types of Ukrainian metal products by October 30, 2008. Ukrainian metallurgists in January-September 2007 received licenses on the supply of 61,740 tons of sheared carbon flat products, which is 43.44% of the annual quota. In compliance with the agreement between the countries, the quota for 2007 was increased from 138,106 tons to 144,111 tons.
24.10.2007 Source: Ukrinform

Ukrainian traders sell 45% more metals in January-September
Ukrainian metal traders increased sales by 45.1% year-on-year to 2.181 million tonnes in the first nine months of 2007, Ukrainian Metal Traders Association president Andriy Fedoseyev said at a conference on the domestic steel market held during the Metal Forum Ukraine on October 18-20. The leading traders were the Metinvest group's Leman-Ukraine with 302,037 tonnes; Industrial Union of Donbas' (IUD) Ukrainian Mining and Metallurgical Company with 221,483 tonnes; Zaporizhstal-related MD Group and Zaporizhmetallholding with respectively 143,059 tonnes ad 57,980 tonnes; and independent traders Komex with 135,518 tonnes, Vikant with 81,842 tonnes, Transagency with 63,184 tonnes and Kaskad with 47,797 tonnes. Fedoseyev said at a conference that Ukraine was expected to nearly double imports of steel roll this year, to 1.9 million tonnes. Consumption of steel products in the country will reach 9.5 million tonnes as the market is "growing dynamically," he said. Imports of flat products jumped 150% year-on-year to 478,000 tonnes in the first nine months of 2007, and imports of long products increased 18% to 266,000 tonnes, with the overall figure growing to 744,000 tonnes from 417,000 tonnes. The main suppliers of flat products were Russian companies, with imports up 34% to 166,000 tonnes from Magnitogorsk Iron & Steel Works; 26% to 126,000 tonnes from Novolipetsk Steel (NLMK); and 10% to 46,000 tonnes from Severstal. In addition, Kazakhstan's Mittal Steel Temirtau supplied 36,000 tonnes and other companies 104,000 tonnes, respectively 8% and 22% more. Ukrainian Association of Metal Traders is one of the organizers of Metal-Forum of Ukraine.
24.10.2007 Source: Interfax

Russia might stop importing Ukrainian large-diameter pipes in 2008
Russia might stop buying large-diameter pipes from Ukraine's Khartsyzsk Pipe Mill in 2008, the head of pipe industry association Ukrtruboprom, Leonid Ksaverchuk said at a conference on the domestic metals market held during the Metal Forum Ukraine on October 18-20. This is unconfirmed information, he added. An official at Ukraine's Industrial Policy Ministry told that exports of Khartsyzsk large-diameter pipes to Russia could indeed fall considerably. The main buyer of Ukrainian large-diameter pipes is gas giant Gazprom.
24.10.2007 Source: Interfax

Association of Rolled Metal Producers and Consumers starts working in Ukraine
The Ukrainian Association of Rolled Metal Producers and Consumers (UARMPC) started working in Ukraine, envoys of the Association told the Metal-Forum of Ukraine-2007 Exhibition. Establishers of the UARMPC were the MetalurgProm Production and Economic Enterprise (Dnipropetrovsk), ZaporizhStal JSC (Zaporizhzhya) and Donix Scientific-Production Association (Donetsk). The Headquarters of the enterprise is located in Dnipropetrovsk (East Ukraine). "The new association's goals are to back and protect rolled metal producers and consumers, meet requirements of enterprises that use rolled metal in their production," President Pleksandr Putnoki of the UARMPC said.
23.10.2007 Source: Ukrinform

Ukrainian steel plants to invest heavily in pulverized coal fuel
Ukrainian steel companies will build pulverized coal fuel facilities with combined capacity of 7.5 million tonnes per year over the next two to five years, the director of the state Coal Chemistry Research Institute, Yevgeny Kovalev said on October 18. In the next few years such facilities will be built for blast furnaces at Zaporizhstal, Alchevsk Iron & Steel Works (AMK), Ilyich Metallurgical Works of Mariupol, Enakievo Metallurgical Plant (EMZ) and Donetskstal, Kovalev said at the Metal Forum Ukraine held in Kyiv on October 18-20. The planned capacity of the pulverized coal facilities will be 2 million tonnes each at Zaporizhstal, AMK and Ilyich, 1.2 million tonnes at EMZ and 0.3 million tonnes at Donetskstal. Azovstal and Arcelor Mittal Kryvy Rih are also considering building such facilities, Kovalev said. He said Ukraine annually consumes about 17 million tonnes of coke, using 27 million-28 million tonnes of coking coal for this purpose. The installation of the planned pulverized coal fuel facilities is expected to annually save 6.4 million tonnes of coke, or 8.32 million tonnes of coking coal.
23.10.2007 Source: Interfax

Ukraine plans to cut greenhouse gas emission by 20%
Ukraine means to reduce the emission of greenhouse gasses by at least 20% by 2020, First Deputy Natural Environment Minister Sviatoslav Kurulenko told at the conference "Current development problems in Ukrainian mining and metallurgical industry". As he noted, Ukrainian metallurgical producers are actively interested in the Kyoto Protocol. As of this date, the Natural Environment Ministry has already issued 74 supporting and 11 approval letters. The general cost of the projects, which are presently being developed within the framework of the Kyoto Protocol is some EUR 3.2bn.
22.10.2007 Source: Government portal

Ukraine exported 2.7% less flat steel products in January-September
Ukraine exported 6.641 million tonnes of flat steel products in the first nine months of 2007, 2.7% less than a year earlier, the deputy head of marketing at the Illich Metallurgical Works of Mariupol, Serhiy Kovalenko said. Exports of hot-rolled coil fell 4.1% to 2.405 million tonnes and exports of hot-rolled thin sheet dropped 10.3% to 155,000 tonnes, while exports of medium-thickness sheet and plate edged up 0.1% to 3.087 million tonnes, Kovalenko said at a conference on the domestic steel market held during the Metal Forum Ukraine on October 18-20. Exports of cold-rolled coil declined 2.2% to 353,000 tonnes and exports of sheet dropped 13% to 406,000 tonnes. Kovalenko said Ukraine exported 2.974 million tonnes of flat products to the Middle East in the nine months, 6.5% more year-on-year. Ilyich Iron and Steel Works of Mariupol is partner of the Metal-Forum of Ukraine.
22.10.2007 Source: Interfax

Metallurgical enterprises to up volumes of cast iron export
Metallurgical enterprises of Ukraine will soon increase the volume of cast iron export, as well as import, chief of division of the Ukrainian National Research and Information Center for Monitoring of Commodity Markets (DerzhZovnishInform) Oleksandr Sheyko said at the Metal-Forum Ukraine 2007 in Kyiv. According to Sheyko, in 2007 Ukraine exports some 2.1 million tons of cast iron, in 2008 it will export 3 million tons, in 2009 4 million tons. In 2007 Ukraine is expected to import 135,000 tons, in 2008 160,000 tons and in 2009 at least 200,000 tons. In 2007, in the expert's opinion, Ukraine will produce some 35.4 million tons of cast iron, in 2008 24.8 million tons and in 2009 46.3 million tons.
20.10.2007 Source: Ukrinform

Steel consumption in Ukraine expected to jump 25-30% in 2007
Consumption of steel products in Ukraine could jump 25-30% this year, to 9.5 million-10 million tonnes, according to a forecast cited by the Derzhzovnishinform information center in a press release for the Metal Forum Ukraine 2007 being held on October 18-20. Demand for steel products in key sectors such as engineering, metalwork and construction is expected to grow 40-50% in 2007. There is also expected to be an increase in imports of steel products. Imports of rolled products jumped 37.7% in the first eight months of 2007. Ukraine imported 765,000 tonnes of flat products in the eight months, shipping in 90,000-110,000 tonnes per month, compared to 60,000 tonnes per month in 2006. The growth is being driven by a three-fold increase, to 325,000 tonnes, in imports of hot-rolled products for pipe and railcar manufacturers.
19.10.2007 Source: Interfax

Ukraine sees higher steel output, stable export
Deputy Industrial Policy Minister Dmytro Kolesnikov told the international Metal Forum of Ukraine 2007 in Kiev that more investment in steel was the main reason for the higher output. He said mills were likely to invest about USD 6.3 billion in modernisation in 2007, compared with about USD 5 billion in 2006.
PDF Download
18.10.2007 Source: Reuters

Hard times will come soon for Ukrainian iron and steel producers
The industry coordinators claimed that the domestic steelmakers enter a rather difficult period. The reason for such claims became the deficit of coke that emerged this summer, which already in September forced the companies to cut the average daily output of cast iron by 500 thousand tonnes as against this August.
PDF Download
15.10.2007 Source: UFC Capital

Ukrainian steelmakers might boost output 8% in 2008
Ukrainian steelmakers might increase pig iron production by 9% to 38.897 million tonnes in 2008, and raise crude steel output 8% to 46 million tonnes, the Head of Industry Association Metallurgprom, Vasyl Kharakhulakh said. The forecasts are based on the tentative plans of steel plants, which could be revised due to potential shortages of resources, such as coke, of which there has been a severe shortage in recent months. As a result of the coke shortage, pig iron production was 5.5% below targets in September, he said. Most affected by the shortage were the Illyich Metallurgical Works of Mariupol, ArcelorMittal Kryviy Rih and the Dzerzhynsk Iron & Steel Works (DMK). There will be coke shortages next year as well, he predicted. Industrial Association Metallurgprom is one of the organizers of the Metal-Forum of Ukraine.
11.10.2007 Source: Interfax

Ukrainian iron ore imports jump 66% in 9 months
Ukrainian steelmakers increased imports of iron ore commodities by 66% year-on-year to 2.416 million tonnes in January-September. Concentrate imports rose 11% to 1.006 million tonnes and sinter - 65% to 820,800 tonnes. Ukraine also imported 589,900 tonnes of sinter, compared with 54,100 tonnes in the same period of last year. In September, Ukraine imported 411,900 tonnes of iron ore commodities, including 163,600 tonnes of concentrate, 158,200 tonnes of sinter and 91,100 tonnes of pellets. Growth in imports was noticeable despite the fact that Ukrainian mines have stockpiled ore. The deputy chairman of mining association Ukrrudprom, Yuriy Putrya said the additional amount of iron ore commodities needed to support steelmakers' plans to boost pig iron production (4.5 million-5 million tonnes) is quite large and should be factored into plans ahead of time. He said mining companies are now filling or actively entering into contracts to export iron ore commodities and they are unlikely to redirect exports to the domestic market.
11.10.2007 Source: Ukrrudprom

Ukraine reduces iron ore exports 2% in 9 months
Ukraine reduced iron ore exports tentatively 2% year-on-year in January-September to 14.715 million tonnes. Iron ore concentrate exports fell 4% to 2.898 million tonnes, while pellet exports went down 6.8% to 5.102 million tonnes. Sintering ore exports went up, by 3% to 6.715 million tonnes. Ukraine exported 1.961 million tonnes of iron ore in September, including 459,000 tonnes of concentrate, 672,000 tonnes of sintering ore and 830,000 tonnes of pellets. The Poltava GOK mining company was the largest exporter of pellets.
11.10.2007 Source: Ukrrudprom

US proposes to extend steel quota agreement with Ukraine
The U.S. Commerce Department has proposed to extend an intergovernmental agreement regulating Ukrainian exports of cut-to-length carbon steel plates for another year, until October 31, 2008, and to increase the annual quota to 150,000 tonnes from the current 142,000 tonnes. First Deputy Industrial Policy Minister Dmytro Kolesnykov said earlier that his Ministry and the Economics Ministry plan to propose that to lift quotas on exports of cut-to-length carbon steel plates to the United States and replace them with Ukrainian suppliers' obligations to set prices for their products that will not be lower than a certain minimum. Exporters of such plate to the United States include the Metinvest group's Azovstal, and the Ilyich Metallurgical Works of Mariupol. Ukrainian steelmakers received licenses to ship 61,740 tonnes of cut-to-length carbon steel plates to the United States in the first nine months of 2007, which amounts to 43.44% of the annual quota.
11.10.2007 Source: Ministry of Industrial Policy of Ukraine

Industrial production up almost 11% in Ukraine since January
Industrial production soared 8.4% in Ukraine in September 2007, year-on-year, and 10.7% from January to September. Growth slightly slowed in September, compared with August (7.9%), which resulted in a slowdown in the first nine months. The slowdown was due to a decrease in growth in the metallurgical sector from 11.3% between January and August to 10.5% from January to September; in the wood-working industry from 25.4% to 24%, in construction and glass production from 20.1% down to 19.1%, and in the chemicals and petrochemical sectors from 5.4% down to 4.3%. Industrial production growth reached 6.2% in 2006, compared with 3.1% in 2005.
10.10.2007 Source: State Statistics Committee of Ukraine

World Bank investment in Ukraine may reach USD 1 billion annually in 2008 - 2011
The board of directors of the World Bank could approve a partnership strategy for the World Bank and Ukraine for 2008 - 2011 envisions investment of up to USD 1 billion annually in 2008 - 2011, senior economist at the World Bank office in Ukraine Martin Raiser said at a press conference in Kiev. Loans will make up $300 million - $400 million of annual investment and the rest will be provided as investment credits. The World Bank board of directors will confirm the strategy by year's end.
10.10.2007 Source: Interfax

Ukrainian coke production grows 5% in January-September
Ukraine increased production of 6%-moisture metallurgical coke by 5% year-on-year to 14.845 million tonnes in the first nine months of 2007. Coke production has declined in recent months due to shortages of coking coal. "The situation with coal supplies remains unsatisfactory. Both shipments of Ukrainian coking coal to coking plants and imports from Russia have decreased," the head of industry association Ukrkoks, Anatoliy Starovoit said. Ukrainian coke-chemical plants ship about 50,000 tonnes of metallurgical coke per day. Steel plants do not have enough coke due to the improved situation on the steel market, which is stimulating growth in production of steel products and, consequently, demand for coke, he said.
06.10.2007 Source: Interfax

Coal extraction down 5% in Ukraine in January-September
Ukraine's enterprises cut coal extraction by 5% in January through September year-on-year, to UAH 56.129 million tonnes. Coal extraction was 5.847 million tonnes in September 2007, which is 5.3% down year-on-year. As reported, coal minister Serhiy Tulub forecasted that coal extraction in Ukraine in 2007 will not exceed the last year result of 80 million tonnes.
05.10.2007 Source: Coal Industry Ministry

Kapazitäten für Qualitätsstahl in der Ukraine unzureichend
Bleche aus nichtrostendem Stahl knapp
PDF Download
05.10.2007 Quelle: bfai

Ukraine uses 75% of EU rolled steel quota in 9 months
Ukrainian steel mills in January through August obtained licenses to ship 992,644 tonnes of rolled steel, or 75.2% of the country's 2007 quota of 1.320 million tonnes of rolled steel for the European Union. Since the beginning of the year, steel mills received licenses to export 148,676 tonnes of SA1 category flat roll in coils to the EU, or 78.25% of the quota for this commodity; 314,695 tonnes of SA2 uncoiled flat roll, or 80.69% of the quota; and 97,411 tonnes of SA3 flat roll, or 69.58% of the quota. They were licensed to export 43,286 tonnes of SB1 semi-manufactures and shapes and sections, or 86.57% of the quota; 165,715 tonnes of SB2 commodities, or 84.98% of the quota; and 222,861 tonnes of SB3 semi-finished and wire rods, or 62.78% of the quota.
04.10.2007 Source: Ministry of Economy of Ukraine

Ukraine uses 47% of Russia's cold-rolled steel quota
Ukrainian steel mills as of October 1 obtained licenses to ship 93,997 tonnes of cold-rolled steel, or 47% 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 by the Russian Economic Development and Trade Ministry and the Ukrainian Economy Ministry.
04.10.2007 Source: Ministry of Economy of Ukraine

Ukraine uses 43.44% of quota for steel plate shipments to US
Ukrainian metallurgical enterprises received licenses in the first nine months of the year to supply 61,740 tonnes of cut carbon steel plate to the United States, or 43.44% of its annual quota. The quota for 2007 was increased to 142,111 tonnes from 138,106 tonnes for 2006. As First Deputy Industrial Policy Ministry Dmytro Kolesnykov previously said, the Industrial Policy Ministry jointly with the Economy Ministry are planning to suggest that the United States cancel quotas for the supply of cut-to-length carbon steel plate and replace them with a deal with Ukrainian producers to supply rolled steel at the minimum prices to the U.S. market.
04.10.2007 Source: Ministry of Economy of Ukraine

Ukraine increased pipe production 5% in 9 months
Ukrainian pipe mills increased production of metal pipe by 5.1% in the first nine months of the year to 2.035 million tonnes. Production in September totaled 204,100 tonnes of pipe. Production growth slowed in recent months as equipment at several enterprises was under repair.
President of the Ukrainian Association of Metal Traders Andriy Fedoseyev said the pipe market in Ukraine is relatively stable in terms of prices and sales. Metal traders in Ukraine work mainly with domestic producers and import small amounts from Russia and small shipments from other countries. Fedoseyev said pipe production was growing mainly due to favorable trends on foreign markets. Most of the pipe is sold in Ukraine through metal trading companies, which account for about 80% of sales. Ukrainian Association of Metal Traders is one of the organizers of the Metal-Forum of Ukraine.
04.10.2007 Source: Ukrtruboprom, Ukrainian Pipe Industry Association

Ukraine boosts steel roll output 6% in 9 months
Ukraine's steel industry increased finished roll output 6% year-on-year in January-September to 26.97 million tonnes. Ukraine produced 31.943 million tonnes of crude steel, up 5%, and 26.604 million tonnes of pig iron, up 9% year-on-year.
Iron ore concentrate production grew 9% to 45.604 million tonnes, pellet production - 10% to 16.862 million tonnes and sinter - 5% to 37.227 million tonnes. Ukrainian coke production rose 5% to 14.845 million tonnes and metalware output rose 1% to 327,000 tonnes.
02.10.2007 Source: Ministry of Industrial Policy of Ukraine

Ukraine's steel traders sell 1.384million tonnes of metal products in 8 months
In January-August 2007, Ukraine's steel-trading companies either purchased at domestic metallurgical enterprises, or imported and sold 1.384 million tonnes of rolled metal according to operational data, which is 67.9% more compared to the same period in 2006. President of the Ukrainian Association of Metal Traders Andriy Fedoseyev told that steel traders imported 116,987 tonnes of rolled metal over the eight months in 2007, which is 5.4% more compared to the same period in 2006. In August steel-trading companies purchased 210,718 tonnes of rolled metal, including 19,211 tonnes of imported rolled metal and 191,507 of rolled metal purchased at Ukrainian enterprises. Ukrainian Association of Metal Traders is one of the organizers of the Metal-Forum of Ukraine.
02.10.2007 Source: Interfax

Beschaffungsmarkt Ukraine: Dynamische Wirtschaftsregion in Osteuropa
Die gefühlte Nähe zu Mitteleuropa, die Annäherung an die EU, die industrielle Tradition und Löhne, für die hierzulande niemand arbeiten geht – die Ukraine wird zunehmend von Einkäufern geschätzt. Gut 20 Prozent der deutschen Importe aus der Ukraine verteilen sich auf Metalle und Legierungen sowie Eisen- und Stahlerzeugnisse. Ein entscheidender Vorteil der ukrainischen Metallurgie und Metallverarbeitung: Sie bietet alles – vom Rohstoff bis zum fertigen Produkt.
PDF Download
10/2007 Source: GVC Management Consulting GmbH

---

September 2007

---

Ukraine approves quotas on rebar supplies to Russia
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. According to a cabinet resolution of September 19, 2007, the 2007 quota is 112,000 tonnes, the 2008 quota is 330,000 tonnes, including 49,500 tonnes for Q1 and Q2 each, and 115,500 tonnes for Q3 and Q4 each; the 2009 quota is 363,000 tonnes, including 54,450 tonnes for Q1 and Q2 each, and 127,050 tonnes for Q3 and Q4 each; and the 2010 quota is 400,000 tonnes, including 60,000 tonnes for Q1 and Q2 each, and 140,000 tonnes for Q3 and Q4 each.
25.09.2007 Source: Interfax

Ukrainian Ministry reduces coal output forecast again
Ukraine's Coal Industry Ministry reduced the national coal production forecast for 2007 again, and now expects that output will not exceed last year's 80 million tonnes. "We are now aiming to achieve last year's level. Unfortunately, the mining program that was previously prepared will not be fulfilled for a number of reasons," Coal Minister Serhiy Tulub said. The Ministry had initially targeted coal production to increase to 82 million tonnes in 2007, but in the middle of the year it reduced this forecast to 81.5 million tonnes. Ukraine mined 50.222 million tonnes of raw coal in the first eight months of 2007, 5.1% less than in the same period of 2006. Production of coking coal dropped 8.2% to 18.882 million tonnes, and output of steam coal fell 3.1% to 31.339 million tonnes.
25.09.2007 Source: Interfax

Ukraine to reduce natural gas consumption to 60 bcm in 3-4 years
Ukraine's Fuel and Energy Ministry has drawn up a program to reduce consumption of natural gas to 60 billion cubic meters a year in the next three or four years, the Ministry press center reported, citing Ministry head Yuriy Boiko. This year Ukraine will reduce natural gas consumption 9.3% to 68 billion cubic meters, from 75 billion cubic meters in 2006. Imports of liquefied gas will rise to 10 bcm a year under the program.
25.09.2007 Source: Interfax

Steel consumption per capita may grow 1.5 times in Ukraine by 2015
Per capita steel consumption in Ukraine may grow to 402 kilograms by 2015, compared to 274 kilograms in 2006, which is similar to consumption levels in the majority of the world's developed countries, director of Ukrpromzivnishekspertyza state enterprise Volodymyr Vlasiuk reported during a meeting on Ukraine's mining complex performance in H1 2007. According to a ministry press release, Vlasiuk believes that main risks for Ukraine on the foreign miming produce markets are trade challenges from China, and strong competition with producers from Russia, Turkey and India on such markets as the Middle East, Europe and the CIS.
22.09.2007 Source: Interfax

Ukraine ranks eighth in world rating of steel producers
Ukraine produced 3.62 million tonnes of steel last month, inching up 2.3% from August last year, and ranked eighth in the rating of world's 67 main raw steel producing countries. The top-ten last month includes, apart from Ukraine, China, accounting for 38.47%of the global total (41.583 million tonnes), Japan (a 3.7% rise, 9.966 million tonnes), the United States (a 0.5% rise, 8.5 million tonnes), Russia (a 2.3% fall, 5.833 million tonnes), South Korea (a 2.9% rise, 4.125 million tonnes), Germany (a 2.5% rise, 3.968 million tonnes), India (a 5.5% rise, 3.85 million tonnes), Brazil (a 4.5% rise, 2.94 million tonnes), and Italy (a 11% fall, 1.613 million tonnes). Ukrainian steel producers increased steel output by 138,000 in August compared to July.
20.09.2007 Source: International Iron and Steel Institute (IISI)

In 2007 EBRD means to invest 800 million EUR to Ukraine
The European Bank for Reconstruction and Development means to invest 800 million EUR to Ukraine, EBRD President Jean Lemierre told a meeting with Ukrainian First Vice Prime Minister Mykola Azarov Monday. The parties discussed topical and promising issues of cooperation between Ukraine and the EBRD. "We are impressed with economic results of Ukraine. They speak about good perspectives for new interesting projects, particularly, in the energy sphere. In 2007 the EBRD will invest some 800 million EUR to Ukraine. At the same time we see impetuous growing interests of investors toward Ukraine. They are pleased with their work in Ukraine and we will consider projects of venture capital in Ukraine," Mr Lemierre said. The EBRD chairman also said EBRD shareholders are ready to hold an annual meeting in 2008 in Kiev.
17.09.2007 Source: Ukrinform

Industrial output grows by 8.7% in Ukraine in August, by 10.9% in January-August
Industrial output grew by 8.7% in Ukraine in August in comparison with August 2006, and by 10.9% in the January-August period. Industrial output grew by 6.2% in 2006.
14.09.2007 Source: State Statistics Committee of Ukraine

Ukrainian metal scrap exports up 1% in January-August
Ukraine exported 515,100 tonnes of scrap ferrous metal in the first eight months of 2007, 1% more than a year earlier. Scrap shipments to domestic steelmakers rose 5.1% year-on-year to 4.541 million tonnes. Ukrainian scrap ferrous metal exports tumbled 41.2% to 743,900 tonnes in 2006.
14.09.2007 Source: Ukrainian Metal Scrap Association UAVtormet

Prime Minister emphasized the necessity of holding project contests of metallurgy production updating
Prime Minister of Ukraine Viktor Yanukovych called upon to hold project contests of metallurgy production updating with the following financing the best of them. The Head of Government disclosed this at the meeting with administrative-economic representatives of the Dnipropetrovsk region. "I would like that we consider all investment metallurgy projects and hold a contest of the best projects on updating the blast furnace, converter shop, rolling mill, in other words, modernization of every processing stage. It also concerns energy saving technologies," Viktor Yanukovych said. During the meeting the Prime Minister has commissioned to consider immediately an issue on providing the Novomoskovsk pipe plant with energy in connection with implementation of the investment project on arc-furnace complex building.
07.09.2007 Source: Government portal http://www.kmu.gov.ua

Creation of Titan Ukrainy would allow state to control up to 25% world's titan-magnesium ore deposits
The creation of the national joint-stock company Titan Ukrainy, in which the state would control a 50% +1 stake, would allow controlling up to 25% of the world's titan-magnesium ore deposits, acting board chairman of the OJSC Sumykhimprom, Yevhen Lapin, said in an interview with the Ekonomicheskiye Izvestiya newspaper. He said that Titan Ukrainy could unite Sumykhimprom, Crimean Titan, Zaporizhia Titan-Magnesium Ore Mill, Vilnohirsk and Irshansk Ore Mining and Processing Mills and small companies of the sector. Lapin said that the creation of Titan Ukrainy would stir up after the elections, and he voiced confidence that investors would be involved.
06.09.2007 Source: Interfax

Ukraine ups pipe output 7.8% in 8 months
Ukraine increased production of ferrous metal pipes by 7.8% year-on-year to 1.832 million tonnes in the first eight months of 2007, including 217,900 tonnes in August. Ukrainian Metal Traders' Association president Andriy Fedoseyev said the country's pipe market is relatively stable at the moment in terms of both prices and sales volume. Prices for pipe products in Ukraine did not change in August, and there are likely to remain unchanged in September as well, though there might be a slight increase, he said. Ukrainian metal traders work largest with domestic pipe producers, importing only small amounts from Russia and other countries. Ukrainian Association of Metal Traders is one of the organizers of the Metal-Forum of Ukraine.
06.09.2007 Source: Ukrtruboprom

Ukrainian coke production grows 4.6% in 8 months
Ukraine increased production of metallurgical coke by 4.6% year-on-year to 13.198 million tonnes in the first eight months of 2007, including 1.616 million tonnes in August. But coke production has started to slow because not enough coking coal is available, the head of Ukrainian Coke Industry Association Ukrkoks, Anatoliy Starovoit told. Starovoit said Ukraine was not mining enough coking coal. The situation with imports, particularly from Russia, is hard to gauge. Ukraine increased production of 6%-moisture metallurgical coke by 0.3% to 18.914 million tonnes in 2006.
06.09.2007 Source: Interfax

Ukraine reduces coal production 5.1% in 8 months
Ukraine reduced coal production 5.1% year-on-year in January-August 2007 to 50.223 million tonnes.
Coking coal production fell 8.2% to 18.882 million tonnes and steam coal fell 3.1% to 31.339 million tonnes. Ukraine raised coal production 2.8% in 2006 to 80.257 million tonnes. Coking coal production fell 8.2% to 30.145 million tonnes while steam coal output rose 10.9% to 50.112 million tonnes.
06.09.2007 Source: Coal Ministry of Ukraine

Ukraine uses 67% of EU rolled steel quota in 8 months
Ukrainian steel mills in January through August obtained licenses to ship 896,923 tonnes of rolled steel, or 67% 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 130,811 tonnes of SA1 category flat roll in coils to the EU, or 68.8% of the quota for this commodity; 310,195 tonnes of SA2 uncoiled flat roll, or 79.5% of the quota; and 83,520 tonnes of SA3 flat roll, or 59.7% of the quota. They were licensed to export 34,017 tonnes of SB1 semi-manufactures and shapes and sections, or 68% of the quota; 139,120 tonnes of SB2 commodities, or 71% of the quota; and 199,258 tonnes of SB3 semi-finished and wire rods, or 56.1% of the quota.
05.09.2007 Source: Ministry of Economy of Ukraine

Ukraine uses 41.2% of annual quota for steel plate supplies to US in 8 months
Ukrainian steel companies received licenses to supply 58,573 tonnes of cut-to-length carbon steel plate to the United States in January through August 2007, which was 41.2% of this year's annual quota of 142,111 tonnes. Under an agreement between Ukraine and the United States, the quota for 2007 was raised from 138,106 to 142,111 tonnes.
05.09.2007 Source: Ministry of Economy of Ukraine

Ukraine boosts steel roll output 6% in 8 months
Ukraine's steel industry increased finished roll output 6% year-on-year in January-August to 23.956 million tonnes. Ukraine produced 28.432 million tonnes of crude steel, up 5%, and 23.679 million tonnes of pig iron, up 9% year-on-year.
Steel pipe production rose 7.8% to 1.832 million tonnes. Metalware output rose 3% to 292,000 tonnes.
Iron ore concentrate production grew 9% to 40.408 million tonnes, pellet production - 11% to 14.922 million tonnes and sinter - 5% to 33.182 million tonnes.
03.09.2007 Source: Ministry of Industrial Policy of Ukraine

Ukraine to probe oil well piping imports
Ukraine's International Trade Commission has opened a special probe into imports of seamless casing pipe and oil well tubing with diameter up to 406.4 mm. The commission said in a statement that the probe was launched following a complaint by the Interpipe corporation's Nyzhniodniprovsky and Niko Tube pipe mills, which claim Ukraine imported 130% more of the pipes last year than in 2003.
03.09.2007 Source: Interfax

---

August 2007

---

Ukraine plans to get USD 2.5 - 3 billion from international financial institutions annually
Ukraine plans over the next five years to borrow USD 2.5 billion - USD 3 billion from international financial institutions annually. Several projects with international financial institutions are in the planning stations, including 16 projects involving the country's biggest creditors - the International Bank for Reconstruction and Development and European Bank for Reconstruction and Development for USD 2.2 billion. Ukraine has received USD 4.41 billion from the International Monetary Fund, USD 4.5 billion from the International Bank for Reconstruction and Development, and USD 667 million from the International Finance Corporation since it began working with these organizations.
27.08.2007 Source: Ministry of Economy of Ukraine

Destabilization of coke sector due to Ukrzaliznytsia plans to cut imported coal shipments
Dnipropetrovsk-based Ukrkoks, the association of coking companies, has warned of a possible worsening in the situation with coke supplies to Ukrainian steel mills due to plans of the state railway administration Ukrzaliznytsia to cut imported coking coal shipments in September, Ukrkoks Director General Anatoliy Starovoit said on August 23. He said that Ukrzaliznytsia has not approved a shipment schedule for September. He said that OAO Russian Railways has also cut coking coal shipments to Ukraine due to a shortage of railway cargo cars for domestic shipments. "Today, there is a difficult situation at plants due to the lack of coal," he said.
24.08.2007 Source: Interfax

Ukraine ups pipe exports 5.5% in H1
Ukraine increased steel pipe exports 5.5% year-on-year in the first half of 2007 to 513,161 tonnes. Pipe exports were valued at USD 607.888 million. Ukraine exported 216,847 tonnes of pipes to Russia, 37,330 tonnes to the United Arab Emirates and 26,843 tonnes to Kazakhstan. Ukraine also exported pipes to the United States (22,237 tonnes), Turkey (21,075 tonnes), Belarus (19,071), Turkmenistan (18,053 tonnes), Germany (17,967 tonnes) and Africa (16,634 tonnes).
Pipe imports grew 6.2% year-on-year to 16,135 tonnes (USD 32.817 million), including 7,892 tonnes from Russia, 3,328 tonnes from China and 1,368 tonnes from Austria.
23.08.2007 Source: State Statistics Committee of Ukraine

Ukraine starts anti-dumping probe into Chinese steel ropes
Ukraine's International Trade Commission August 17 started an anti-dumping investigation into steel ropes and cable imported from China. The commission launched the probe following complaints by Ukrainian producers OJSC Stalkanat and OJSC Silur. Ukraine wrapped an anti-dumping investigation against Russian steel ropes and cable at the end of July up without taking further action. "Anti-dumping measures would be against national interests," according to a commission statement at the time. The Ukrainian companies blasted that decision, but claim that the imports from China are doing even more damage to them than the imports from Russia. The Ukrainian Economics Ministry will register the interested parties within 30 days and consider their written comments within 60 days.
23.08.2007 Source: Interfax

Ukraine produces 3.59 million tonnes of steel in July, 8th biggest producer in world
Ukraine in July cut steel output by 1% year-on-year, to 3.59 million tonnes, making it 8th in the rating of the 67 key world steel producers drawn up by the International Iron and Steel Institute (IISI). Last month's top-ten included China (41.252 million tonnes, a 14.5% rise), Japan (10.009 million tonnes, a 1.5% rise), the United States (8.4 million tonnes, a 0.7% rise), Russia (6.21 million tonnes, a 5.2% rise), South Korea (4.14 million tonnes, a 2.7% rise), Germany (3.997 million tonnes, a 0.1% fall), India (3.85 million tonnes, a 7.2% fall), Brazil (2.869 million tonnes, a 5.3% rise), and Italy (2.65 million tonnes, a 0.1% rise). Ukrainian steel mills in July 2007 increased steel output by 115,000 tonnes compared to June.
22.08.2007 Source: International Iron and Steel Institute

Russia and Ukraine to sign deal on rebar deliveries
Russia and Ukraine are set to sign an agreement to settle a dispute over steel reinforcement bar shipments. Russian Prime Minister Mikhail Fradkov has instructed the Russian Economic Development and Trade Ministry to sign the agreement with the Ukrainian Economics Ministry regarding the bars, which are used to make reinforced concrete. A source at the Russian ministry told Interfax that the agreement, which would be back-dated to August 14, 2007, would limit Ukrainian rebar shipments to Russia to 112,000 tonnes between August 14, 2007 and December 31, 2007, inclusive, and to 330,000 tonnes in 2008, 363,000 tonnes in 2009 and 400,000 tonnes in 2010.
20.08.2007 Source: Interfax

Ukraine seeks investors to develop brown coal deposits
Ukraine's Coal Industry Ministry plans to attract investors to develop deposits in the Dnepr brown coal basin. The project calls for developing the two most promising deposits in the basin: Aleksandriyiske, with brown coal reserves of 485 million tonnes, including 63 million tonnes for open-pit mining at existing mines; and Verkhnedniprovske, with reserves of 236 million tonnes for open-cast mining at explored sections. The Ministry reckons the deposits have potential to produce 5 million-6 million tonnes of coal per year by open-pit mining. The deposits are targeted to come on stream within two years. The ministry is also proposing a project to build thermal power plants at the Verkhnedniprovske deposit with capacity of 600 to 800 MW. The strategic goal is to produce electricity from local brown coal using the latest European technologies.
15.08.2007 Source: Interfax

Ukraine not to impose antidumping sanctions against Russian cable
Ukraine's International Trade Commission has closed an antidumping investigation against imports of Russian steel wire rope and cable without coating, including cable in closed coils, and has decided against imposing anti-dumping sanctions. "Anti-dumping measures would be against national interests," according to a commission announcement published in the newspaper Uryadovy Kuryer. The commission launched the antidumping investigation against Russian cable and steel rope on January 31, 2006 following complaints filed by the companies Stalkanat and Silur. In July 2006, the commission decided to impose preliminary antidumping duties of 32.63% on imports of these products from Russia.
13.08.2007 Source: Interfax

Ukraine puts off talks on increasing metalware quota with EU for September
Ukraine's Economy Ministry plans to hold consultations with representatives of the European Commission in September 2007 on an increase in this year's metalware quota by 855,340 tonnes. The September consultations are expected to be held in Brussels. As was reported earlier, European consumers have shown a desire to increase Ukrainian quotas for steel products supplies to the European Union.
13.08.2007 Source: Interfax

Industrial output in Ukraine in July up 7.8%, in 7 months 11.2%
The pace of industrial output growth in Ukraine slowed to 7.8% year-on-year in July 2007, whereas in June it grew by 10.4% and in May by 9.9%. Such a pace of growth made industrial production growth in the first seven months slow to 11.2%. The State Statistics Committee said that in July machinery and equipment output grew by 12.9%, mineral production output grew by 11.2%, pulp and newsprint output grew by 9.3%, leather output grew by 8.2%, electricity, gas and water distribution grew by 4.7%, mining and metallurgic production grew by 3.6% and 3.2% respectively.
11.08.2007 Source: State Statistics Committee of Ukraine

Ukrainian metal exports total USD 7.9 billion in January-July
Ukraine exported metal products worth USD 7.9 billion in the first seven months of 2007. Serhiy Syrotiuk, Head of the Metal Industry Department of Ukraine's Industrial Policy Ministry, told that 24% of the exports went to European Union countries, 25.7% to the Middle East and Asia, and 14% to Turkey.
Ukraine's production of key types of metal goods for the first seven months of 2007 was between 6% and 10% up on the same period last year. Production of rolled and unrolled steel increased 6% year-on-year to 20.92 million and 24.81 million tonnes respectively, and that of pig iron grew 10% to 20.65 million tonnes. Pipe production rose 10% to 1.6 million tonnes, and that of other metal goods went up 8% to 266,000 tonnes.
09.08.2007 Source: Interfax

Ukraininan GDP growth around 8% over 7 months
GDP growth in January through June was around 8%, First Vice-Premier and Finance Minister Mykola Azarov said during a meeting with Bavarian Prime Minister Edmund Stoiber on Wednesday. He said that the Ukrainian economy is actively developing, investment is growing, and wages and pensions are increased in the light o the economic growth. As reported, the Ukrainian government approved macroeconomic forecasts for 2007, according to which GDP is expected at 6.5% with 7.5% inflation.
09.08.2007 Source: Interfax

Ukrainian iron ore imports jump 61% in 7 months
Ukrainian steelmakers increased imports of iron ore commodities by 61% year-on-year to 1.72 million tonnes in the seven months of 2007. Concentrate imports rose 1.3% to 720,000 tonnes and sinter - 91.3% to 593,800 tonnes.
09.08.2007 Source: Ukrrudprom

Ukraine reduced iron ore exports 4.8% in 7 months
Ukraine reduced iron ore exports tentatively 4.8% year-on-year in January-July to 11.011 million tonnes. Iron ore concentrate exports fell 7.5% to 2.047 million tonnes, while pellet exports grew 0.6% to 5.183 million tonnes. Sintering ore exports fell, by 10.1% to 3.781 million tonnes. Ukraine exported 1.745 million tonnes of iron ore in July, including 327,000 tonnes of concentrate, 595,000 tonnes of sintering ore and 823,000 tonnes of pellets.
09.08.2007 Source: Urrrudprom

Ukrainian coke production grows 6% in 7 months
Ukraine increased production of metallurgical coke by 6% year-on-year to 11.582 million tonnes in the first seven months of 2007, including 1.621 million tonnes in July. But coke production has started to slow because not enough coking coal is available. The head of Ukrkoks Association, Anatoly Starovoit said Ukraine was not mining enough coking coal and the same was happening in Russia, so imports were down as well. Coal supplies to Ukrainian coking plants could fall 12-15% in August. Ukraine increased production of 6%-moisture metallurgical coke by 0.3% to 18.914 million tonnes in 2006.
07.08.2007 Source: Ukrkoks

Ukraine uses 25% of Russia's cold-rolled steel quota
Ukrainian steel mills as of August 1 obtained licenses to ship 50,000 tonnes of cold-rolled steel, or 25% 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.
04.08.2007 Source: Ministry of Economy of Ukraine

Ukraine reduces coal production 5.2% in January-July
Ukraine reduced coal production 5.2% year-on-year in January-July 2007 to 44.08 million tonnes. Coking coal production fell 8.4% to 16.6 million tonnes and steam coal fell 3.2% to 27.48 million tonnes. Ukraine produced 5.97 million tonnes of coal last month, down 9.8% year-on-year. Production of coking coal fell 10.2% last month to 2.19 million tonnes, with steam coal production down 9.7% to 3.78 million tonnes.
01.08.2007 Source: Ukrainian Coal Ministry

Ukrainian inflation at 1.4% in July
Ukrainian inflation was 1.4% in July 2007 compared to 2.2% in June and 5.6% in January-July. The Ukrainian government is forecasting that inflation will drop to 7.5% in 2007 from 11.6% in 2006.
Source: State Statistics Committee of Ukraine

---

Juli 2007

---

Ukraine approves cold-roled steel quotas to Russia
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 by the Russian Economic Development and Trade Ministry and the Ukrainian Economy Ministry. 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.
30.07.2007 Source: Interfax

Foreign direct investment could hit USD 5.5 billion in Ukraine in 2008
Ukrainian Ministry of Economy is forecasting that foreign direct investment will be $5.5 billion in 2008. Improving the country's investment climate and creating conditions for foreign investment play a special role in Ukraine's preparations to host the 2012 European Football Championship, Economics Minister Anatoliy Kinakh said at a ministry meeting on Friday. A working group on Ukraine's accession to the WTO said at a July meeting that conditions need to be consolidated to complete WTO accession procedures in 2007. Foreign direct investment in the Ukrainian economy is expected at USD 3 - 4 billion in 2007, as in 2006. Foreign direct investment could grow an average of 50% next year.
27.07.2007

Ukrainian steel market to double by 2012, says expert
The consumption of steel products on the Ukrainian market by 2012 will be around 15 million tonnes, while in 2006 the market was estimated at 7-7.5 million tonnes, Sales Director of the Steel and Rolling Division of Metinvest Holding Ltd., Andriy Parkhomchuk, said in an interview with the Business newspaper. He said that steel production by 2012 would reach 50 million tonnes, while in 2006 it was around 40 million tonnes. "As of now, in the future Ukraine is expected to export more than the half of its [steel] products," the expert said. Metinvest's steel division includes Azovstal, Ferriera Valsider, Yenakiyeve, Khartsyzsk and trading company Leman Commodities.
25.07.2007 Source: Business newspaper

Ukrainian Coal Ministry to raise UAH 800 million for investment projects in July and August
The Ukrainian Coal Industry Ministry will raise UAH 800 million for investment projects in July and August to equip new coal faces and to finance capital construction. "In July and August, the first coal