Ukraine exported 1.56 million tons of iron ore in July

In July 2022, Ukrainian iron&steel companies reduced iron ore exports by 57.1% compared to July 2021 – to 1.56 million tons. In monetary terms, iron ore exports for the month decreased by 74.6% – to $197.3 million. Customs statistics’ data reports about it.

In January-July, Ukrainian miners sent 18.57 million tons of iron ore abroad, reducing exports by 28.8% compared to the same period in 2021. The company’s export revenue during this period decreased by 49.8%, to $2.36 billion.

At the same time, in January-April, Ukrainian iron ore export amounted to 12.98 million tons, which is about 3.2 million tons of iron ore per month. In May-July, 5.59 million of iron ore were sent for export – about 1.86 million tons per month.

Slovakia became the main consumer of Ukrainian iron ore in six months – 19.8%. China is in second place – 16.07%, and Poland is in third – 15.6%.

In connection with the war and the blockade of ports, China moved to the second place in terms of iron ore supplies from Ukraine, and by the end of the year, European countries may completely displace China from this list.

As GMK Center reported earlier, after the invasion of Russia on the territory of Ukraine, domestic steel companies reduced the export of products to a minimum due to the blockade of sea ports. Steelmakers are looking for ways to ship their products through the railway infrastructure, but due to the influx of cargo, Ukrzaliznytsia and border crossings are unable to cope. In addition, this method of cargo delivery is unprofitable due to the two-fold increase in costs.

Previously, problems with logistics are superimposed on unfavorable market conditions – iron ore prices are falling. As a result, Ukrainian mining and processing plants are forced to completely stop or reduce the iron ore production.

On August 19, January futures prices for iron ore on the Dalian Commodity Exchange for two weeks decreased by 6.8%, to 723 yuan/t ($106.07/t according to the NBU rate as of 08/19/2022).

At the same time, Goldman Sachs predicts a drop in the price of iron ore in the third quarter to $70/t. This forecast is based on the crisis in the Chinese real estate market.

As GMK Center reported before, in 2021 Ukraine reduced the export of ferrous metals by 4.2% compared to 2020 – to 44.5 million tons. In monetary terms, the indicator increased by 62.8% – to $6.9 billion.

The main producers of iron ore in Ukraine are Ingulets, Kryvyi Rih, Poltava, Northern, Central, Southern Minings, ArcelorMittal Kryvyi Rih, Sukha Balka Mining, and Zaporizhzhia Iron Ore Plant.