Steel import from Ukraine

Steel is an excellent construction material, one of the most popular and most often used in the world in many industries, e.g. construction, industry, automotive, gastronomy and medicine. According to the World Steel Association, global crude steel production in 2021 was 1911,9 mln tonnes. The leading steel producers are Asian countries (China, India, Japan). Ukraine is a big player in this market – it ranks 14th in the world in terms of the production of this resource (data from 2021).

Steel production in Ukraine

Ukraine has all the necessary conditions for the development of metallurgy: rich supply of natural resources, dense transport network, high-qualified workers and many consumers interested in buying their products. Most of the manufactured goods are intended for export (on average 75% of the annual production).

The chart on the right shows the production and export of steel in Ukraine in the years 2013 – 2020

Source: www.slovoidilo.ua

Kryvyi Rih steelworks, Ukraine

The leader on list of steel producers is ArcelorMittal, with its legal seat in Luxembourg and offices in 60 different countries. This company production is about 10% of all global production (in 2019 it was 97 mln tonnes of steel). ArcelorMittal Kryvyi Rih steelworks (marked as a red dot on the map) is one of the largest steel companies  in Ukraine. We are honored to support ArcelorMittal Kryvyi Rih steelworks in deliveries of steel from Ukraine to Poland.

Source: https://geografiamozil2.jimdofree
ArcelorMittal Kryvyi Rih steelworks / Source: https://open4business.com.ua

Steel transport through Poland

Steel imported from Ukraine is delivered to Poland mainly by rails. Due to the different track gauge on East and EU countries, it has to be reloaded. Numerous transhipment terminals are present at all border crossings.

Railway border crossings operated by TSL Silesia:

Hrubieszow (PL) – Izov (UA)

From Hrubieszow to west Poland (to Slawkow) leads Linia Hutnicza Szerokotorowa (LHS, Broad-gauge Metallurgical Line), that is 400km track section of width 1520mm. Along the entire length of the LHS there is a numerous transhipment infrastructure, including the TSL Silesia Reloading Point in Slawkow together with the Customs Agency.

Dorohusk (PL) – Jagodin (UA)

TSL Silesia has its office in Dorohusk as well. As in Medyka, steel has a large share in transhipments here.

Medyka (PL) – Mosciska (UA)

Medyka, as a key railway dry transshipment port of south-eastern Poland is a gateway to cargo traffic on the east-west as well as north-south routes. TSL Silesia has been present in Medyka since 2015 as a Customs Agency, serving to a large extent the metallurgical market in the form of raw materials, semi-finished and finished products in import and export.

Most often, steel is delivered to Poland in coal wagons and then reloaded to the same type of wagon. One broad-gauge train consist of as many as 54 wagons, from which two standard-gauge trains are formed. Due to the accumulation of shipments at border crossings, certain transport restrictions have been introduced for pig iron from Ukraine, but TSL Silesia has an exceptional permit to transport it.

Source: https://www.uz.gov.ua/konv_zaborona/ShowPage.php

The final recipient very often is located in a country other than Poland, which is why steel is transported to the port in customs transit.

Import and transit clearance

Transit is a customs procedure, which allows to transport goods under a customs supervision withouth the necesarry to pay fees (customs duties, excise duty, VAT and others). In case of steel transport through Poland, the transit procedure is often used due to fact that the final recipient is outside the European Union. Such transport must be secured by the amount of taxes and duties due until the end of the T1 transit procedure.

In case of the import, the buyer is obligated to pay all customs duties so that the goods can be released for free circulation in the EU. Currently, all import duties from Ukraine are suspended for a period of one year.

TSL Silesia participation in the transport of steel from the East

Quantities of pig iron, transported in 2022 (data from September) by TSL Silesia from Ukraine to Poland:

Ships with steel imported from Ukraine, loaded in polish seaports with TSL Silesia:

The acticities of TSL Silesia related to steel transhipment at border crossings and seaport include, among others:

  • notificating and planing loadings of the wagons / trucks at the terminal,
  • making photo documentation of the reloading operations,=
  • issuing the documents necessary for further steel transportation after its transshipment, on the client’s behalf,
  • issuing the port documents on loading the wagons,
  • supervising and raporting the reload of steel from the wagons / trucks on the yard / wagons / trucks in relations both indirect and direct,
  • controlling the steel unload / load in accordance with the order’s assumptions,
  • issuing the orders to the port / handling terminal for reloading the goods in relation: wagon – yard / warehouse and for loading the steel on a particular mode of transport (wagon, truck, ship) including commerce, time and financial terms
  • preparation of documentacion necessary to carry out export / import clearance and transit procedure of steel.

TSL Silesia offers steel reloading on border crossings in relation wagon – wagon or wagon – truck, directly or indirectly with a storage in the warehouse / on the yard. In ports, steel from Ukraine is reloaded from wagon or truck to a ship (also with the use of temporary storage). As a forwarding company, we deal with planning / notification of loading, we supervise the regularity of the operations and prepare the necessary documentation (photographic as well). Our customs agents participate on border controls and deliver documents to / after the control to Customs Office. We service almost all types of steel: billets, rebars, wire rod, pig iron, sheets and coils. The presence of TSL Silesia branches at border crossings and in all large polish seaports guarantees forwarding supervision over reloading and effective coordination of activities.

We invite you to cooperation!