2.5.6. NON-FERROUS METALS

Accretion in non-ferrous metallurgy, which took place in 2000 and amounted to 18.8%, had direct impact on the export turnover.

Throughout 2000, export of non-ferrous metals and products yielded 680.5 ths. tons worth USD 773.5 mln., which outran the respective figures of 1999 by 22.5% and 36.7% respectively (see Figure 1).

Within the total export of non-ferrous metals from Ukraine in 2000, copper and aluminum products accounted for 85.5% in terms of physical shipments and 86.4% in terms of currency earnings.

The following commodities contributed the largest shares to supplies of non-ferrous metals:

– crude aluminum and aluminum alloys – over 50.0% in total exports of non-ferrous metals;

– refined copper and copper alloys – over 13.0%;

– scrap of copper and copper alloys – over 6.0%;

– scrap of aluminum and aluminum alloys – over 4.0%.

It should be noted that Ukrainian non-ferrous metals export policy in 2000 was significantly affected by amendments to the Law of Ukraine "On metal scrap", which completely banned exports of non-ferrous metals, including tolling contracts. At the same time, restrictions were also applied to exports of semis of non-ferrous metals. Export of aluminum, copper, as well as other non-ferrous metals and alloys as ingots is permitted only when a producer of the commodity possesses certificate that verifies conformity of products to the system of European standards ISO 9002. The measures were taken to put the Ukrainian market for non-ferrous metals in order, as well as to prevent exports of highly valuable and scarce raw materials, which causes damage to the Ukrainian producers.

General attention of operators of the Ukrainian market for non-ferrous metals, as well as that of investors, was turned to privatization of Zaporozhye aluminum smelter. Arrangement of the issue took months due to changeover of the tender's participants, as well as because of moot points, which evolved after final decision about the future and owner of the smelter. However, at the beginning of 2001, decision of the tender committee announced Russia-based AvtoVAZ-Invest as a winner.

In 2000, imports of non-ferrous metals and products to Ukraine totaled 106.2 ths.tons, which yielded USD 298.3 mln. of currency earnings (see figure 2). These are above the respective figures of 1999 by 38% and 31% respectively. As ever before, imports of aluminum, copper, and zinc products to Ukraine still hold the first lane.

Comparison to 1999 reveals that import turnover added some 28-52% by each commodity group. Still, the most rapid growth was traced in imports of nickel group. Physical supplies of nickel products added 176% or 4.3 ths. tons against 1999.

Top articles within the Ukrainian imports of non-ferrous metals in 2000 were as follows:

- nickel and nickel alloys in ingots accounting for 12.1%;

- refined copper and copper alloys in ingots, which made 8.4%;

- zinc and zinc alloys in ingots with 8.3%;

- aluminum foil yielding a 7.6% share;

- copper wire that contributed 7%; as well as

- plates, sheets, strips, and bars of aluminum adding 6.7%.

Fig.1. Exports of non-ferrous metals from Ukraine over 1999 - 2000

74 – copper group;
75 – nickel group;
76 – aluminum group;
78 – lead group;
79 – zinc group;
80 – tin group;
81 – other non-precious metals.

Fig.2 Imports of non-ferrous metals to Ukraine over 1999-2000

74 – copper group;
75 – nickel group;
76 – aluminum group;
78 – lead group;
79 – zinc group;
80 – tin group;
81 – other non-precious metals.