Net losses of the metallurgical industry of Ukraine increased to almost 17 billion hryvnia

The metallurgical industry of Ukraine, according to preliminary data of the branch association "Metallurgprom" for the first nine months of this year, increased losses by 200 million hryvnia - up to 16.7 billion. At the same time, uncovered losses of metallurgical enterprises increased to 31.2 billion hryvnia, which is three times higher than in the same period last year.

According to the merger, the net income (proceeds) from the sale of metallurgical products for the specified period increased compared to the nine months of 2014 by 19 percent or 23.9 billion hryvnia and amounted to 150.7 billion hryvnia.

The growth in losses occurred against the background of a significant rise in prices. According to Metallurgprom, compared to the same period in 2014, prices for iron ore in Ukraine increased by 50 percent, pellets - by 17 percent, limestone - by 68 percent, refractories - by 58-89 percent in various positions. The cost of ferroalloys in hryvnia terms increased by 73-108 percent, coke - by 100 percent, scrap metal - by 40 percent, natural gas - by 58 percent, electricity - by 36 percent. At the same time, prices for sinter ore, concentrate and agglomerate decreased by 10, 3 and 3 percent, respectively.

Export prices for steel in hryvnia increased over the specified period by 49 percent, the increase in domestic prices was not monitored by the association, but according to our data, it also amounted to about 50 percent.

In January-September, Ukrainian metallurgical enterprises received 13.9 billion hryvnia of VAT refunds. As of October 1, the companies of the mining and metallurgical sector of the country declared for VAT refunds in the amount of UAH 5 billion.

According to Metallurgprom, despite the difficult financial situation, the volume of capital investments in the modernization and technical re-equipment of metallurgical enterprises that are part of the association increased over the nine months of this year, compared to the same period in 2014, by 32 percent and amounted to 5, 3 billion hryvnia.