Ukrainian steel export revenue slides 10% mom in July

Ukraine’s total income from the export of steel products decreased 10% mom in dollar terms to USD 1.2 bln in July, according to UkrStat. In July, steel products comprised 21% of total exports, which grew 5% mom to USD 5.8 bln. In 7M12, total exports grew 3% yoy to USD 39 bln, while sales of steel products abroad was 23% yoy lower at USD 9.5 bln.

Roman Topolyuk: July’s low monthly export revenue from steel plunged further mom and was approximately the same as has been generated in the weak month of February over the two last years. This was caused by decreasing steel production in June (-4% mom) and July (-9% mom), as well as by falling steel prices. We see only the possibility of a slight rebound in both steel output and pricing in the coming months, meaning that steelmakers’ contribution to the country’s total export revenue should continue to be low yoy.