Ukraine railway product exports slide 1% m/m in December

Ukraine’s exports of railway products amounted to 12.4
kt in December, 1% less 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 2021 (155.9
kt for the period), 17% less than the 2020 average of 15.6 kt per month.

 

Exports to Russia amounted to 0.5 kt in December, 9%
less m/m and 91% less than the 2020 average of 5.0 kt per month.

 

Exports to Belarus amounted to 1.8 kt in December, 40%
less m/m and 39% lower than the 2020 average of 3.0 kt per month.

 

The average export price for railway products rose 2%
m/m in December to USD 1,558/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: The 40% m/m
plunge of exports to Belarus is concerning.

 

Interpipe’s December operational report, expected to
be released in a few days, might provide more information on the company’s
railway product sales, including the domestic volumes.

 

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.