KZRK reduced ore production by 50% y/y in 1H2025

In January-June 2025, Kryvyi Rih Iron Ore Plant (KZRK) reduced its commercial ore production by 50.1% compared to the same period last year, from 710,000 tons to 354,000 tons. This is evidenced by the company’s interim report, Interfax-Ukraine reports.

In the second quarter, the plant produced 118,000 tons of ore, which in monetary terms amounts to UAH 260.9 million, and the average selling price was UAH 1,799/ton. During this period, revenue amounted to UAH 545.4 million, of which 99.9% came from exports. In the first quarter of 2025, 236,000 tons of products were produced, sold mainly to Slovakia, the Czech Republic, Serbia, Switzerland, and Austria.

The company reduced its income from its usual activities, which led to a shortage of working capital to finance production programs. The company recognizes that in order to improve liquidity, it is necessary to increase sales volumes and increase its own working capital.

Competition in the iron ore market remains high, as production capacity significantly exceeds demand. KZRK’s main competitors are the Ukrainian companies Sukha Balka and Rudomain, as well as the Brazilian mines Itabira and Carajas.

Despite sales difficulties, the plant continues to build new horizons at the Ternivska, Kozatska, Pokrovska, and Kryvorizka mines. At the same time, capacity utilization in Q2 was only 26.5%, reflecting limited load due to downtime in April-May.

The average number of employees in Q2 was 3,494, and the wage fund decreased by 8.2% y/y.

In 2024, KZRK incurred a loss of UAH 2 billion, but in 2025 it plans to gradually resume production with the aim of reaching 3.48 million tons of commercial output.

In March 2025, KZRK stopped production due to debts and power cuts. In May, the company announced plans to partially resume production after the downtime. In particular, it was about launching one or two of the four mines, including the Ternivska mine.