Deliveries of limestone by rail in 2023 decreased by 9% y/y

In 2023, the Ukrainian lime industry reduced the supply of limestone by rail by 9% or 318 thousand tons compared to 2022 – to 3.19 million tons. This is according to the Ukrainian Association of Lime Industry (UALI).

In December, 216 thousand tons of limestone were delivered by rail, which is 118% more than in December 2022, but 12% less than in November.

«After successful previous years, the limestone market underwent dramatic changes in 2022 due to the war in Ukraine. In 2022, we supplied 3.5 million tons of limestone, which is 67% less than in 2021. The downward trend continues in 2023,» the report says.

73% of raw materials are shipped from Khmelnytsky, Ternopil and Odesa regions. The main consumers are Dnipro, Zaporizhzhia, and Ivano-Frankivsk regions. The largest share of consumption is accounted for by enterprises in Dnipropetrovsk oblast.

«The main consumers of limestone by rail, as well as in the market as a whole, are metallurgical enterprises, some of which are currently out of operation, damaged, destroyed or under occupation. Cement, lime, and sugar industries also have a significant share,» the UALI notes.

In 2023, steel enterprises reduced the consumption of limestone by rail by 11% y/y, the cement industry – by 25%, lime producers – by 31%. The sugar industry increased its consumption by 86% y/y during this period.

As GMK Center reported earlier, in 2022, the Ukrainian lime market fell by 58% compared to 2021. The key reason for the decline is Russia’s aggression and a full-scale war. Last year, lime production decreased by 61% y/y. Consumption of the product also dropped significantly, in particular, rail deliveries by 56% y/y and imports by 70% y/y.