Ukraine railway product exports rose 16% m/m in November

Ukraine’s exports of railway products amounted to 12.5
kt in October, 16% more m/m and 20% below the average 2020 level, according to
Concorde Capital’s analysis of State Customs Service’s goods exports data.

Exports amounted to 13.0 kt per month in 11M21 (143.5
kt for the period), 16% less than the 2020 average of 15.6 kt per month.

Exports to Russia amounted to 0.5 kt in November, 17%
more m/m and 90% less than the 2020 average of 5.0 kt per month.

Exports to Belarus amounted to 3.0 kt in November, 4%
less m/m and 2% higher than the 2020 average of 3.0 kt per month.

The average export price for railway products slid 2%
m/m in November to USD 1,533/t.

Ukraine’s largest railway wheel producer is Interpipe
(INTHOL), which in 2020 exported 165 kt of railway products (13.8 kt per
month).

Dmytro Khoroshun: November’s
2% price drop is slightly disappointing after the three months of modest increases
that followed a year of stagnant prices.

However, the recent hike of the duty for exports of steel scrap from Ukraine should
boost the pre-tax profitability of Interpipe’s railway product segment by up to
USD 125/t, we estimate.