Ferroalloy producers of Ukraine exported 8.94 thousand tons of products in October

In October 2023, Ukrainian ferroalloy enterprises reduced the export of ferroalloys by 29.1% compared to the previous month – to 8.94 thousand tons. In monetary terms, deliveries of ferroalloys abroad during this period fell by 25.3% m/m – to $7.56 million. This is evidenced by State Customs Service’s data.

Compared to October 2022, in October 2023, the volume of exports of ferroalloys increased by 37.7%, and the revenue from deliveries fell by 17.3%.

In January-October 2023, Ukraine exported 334.01 thousand tons of ferroalloys worth $288.96 million, which is 10.5% more and 44% less, respectively, on an annual basis.

The main consumer of Ukrainian ferroalloys in 10 months of 2023 was Poland (53.6% in monetary terms). The share of Turkiye in the total volume of exports was 13.5%. In the third place is the Netherlands – 8.7%.

In the first quarter of 2023, Ukrainian ferroalloy companies reduced their production by 2.7 times compared to the same period last year, to 70 thousand tons.

Russian missile attacks on Ukraine’s energy infrastructure at the end of last year significantly worsened the situation for the ferroalloy industry, which is more dependent on stable energy supply than others. As a result of these strikes, the industry’s enterprises temporarily, partially or completely stopped working.

NFP, ZFP, Marhanets and Pokrovsk mining and processing plants resumed operations after the power supply stabilized, while Pobuzhsky Ferronickel Plant has not been producing since November 2022, as the company is dependent on imported raw materials and cannot ensure a stable flow of raw materials under the blockade of seaports.

In early November 2023, ferroalloy plants that resumed operations last year announced a suspension of production at least until spring 2024. In particular Marganetsk and Pokrovsk Minings, as well as ZFP and NFP said that production processes were suspended due to possible winter power outages and water supply problems. Enterprises indicate that there are enough raw materials and products in warehouses to meet the needs of consumers.

Thus, exports of Ukrainian ferroalloy products will continue to decline until the end of the year amid a shutdown of producers and a seasonal decline in demand from export consumers.

As GMK Center reported earlier, in 2022 ferroalloys of Ukraine reduced exports production by 47.7% compared to 2021 – to 349.6 thousand tons. Revenue from the export of ferroalloys decreased by 46% y/y – to $564.14 million in January-August 2022 plants of the industry produced 399.46 thousand tons of products, which is 32% less y/y.