Ukraine's steel industry saw a 15.3% rise in losses January through July 2015 / Photo from UNIAN
Ukraine's steel industry saw a 15.3% rise in losses (negative pre-tax financial results) January through July 2015, or by UAH 1.9 billion year-over-year, to UAH 14.3 billion, according to steel industry association Metallurgprom.
"Financial results from operational activity were estimated at UAH 8.7 billion against UAH 4.6 billion in the seven months of 2014, but loss from foreign exchange rate differences (re-assessment of loans in foreign currency and interest on them) translated into a negative financial result before tax," the association said in a statement.
According to Metallurgprom, net income (revenue) from sales of steel goods for the reported period increased by 15.1% year-over-year, or UAH 15.4 billion, to UAH 117.4 billion.
There was a significant increase in prices (in the hryvnia equivalent) of main raw materials as compared to the same period last year: prices of iron ore were up by 46%, pellets by 16%, limestone by 72%, refractory materials by 59-108%. Prices of ferroalloys grew by 80-123%, coke by 119%, scrap metal by 48%, natural gas by 67%, and electricity by 37%.
"At the same time, export prices of steel staples made by Ukrainian producers decreased by an average of 23% in the dollar equivalent, but rose by an average of 58% in the hryvnia equivalent," the statement said.
In the seven months, steelmakers were paid UAH 9.8 billion in delayed VAT refunds. At the same time, VAT refunds claimed as of August 1 totaled UAH 6.2 billion (VAT refunds arrears as of August 1, 2014, amounted to UAH 2.8 billion).
As UNIAN reported earlier, the Ukrainian metallurgical industry's losses (negative financial results before tax) increased by 84.4%, or UAH 10.3 billion, in 2014 from 2013 to UAH 22.5 billion.