Ukraine exported 23.3 million tonnes of iron ore in January-August

In January-August 2024, Ukrainian mining companies increased iron ore exports by 2.1 times compared to the same period in 2023, to 23.32 million tonnes. This is evidenced by data from the State Customs Service.

In August, shipments of iron ore raw materials abroad totalled 2.51 million tonnes, up 1.1% month-on-month and 64.6% compared to August 2023. In August, exports recovered slightly after hitting their lowest level since December 2023 in July.

The resumption of iron ore exports in 2024 is supported by the opening of a sea export corridor for iron and steel cargoes in January. As a result, Ukrainian mining companies have resumed supplies of raw materials to distant markets, in particular to China, which has once again been a leading importer of iron ore from Ukraine since the beginning of the year. In January-August, Chinese consumers imported 10.3 million tonnes of Ukrainian iron ore, and in August – 997.7 thousand tonnes (+20.1% m/m). At the same time, European countries remain among the top three importers, with 3.45 million tonnes of iron ore shipped to Slovakia in 8 months of 2024 and 422.6 thousand tonnes in August (+9.3% m/m), and 3.49 million tonnes and 509.95 thousand tonnes (+20.2% m/m) to Poland, respectively.

Revenues from iron ore exports in January-August 2024 totalled $2.03 billion (+72.1% y/y), and in August – $201.4 million (-12.1% m/m; +39.5% y/y).

As GMK Center reported earlier, in 2023, Ukraine reduced iron ore exports by 26% compared to 2022, to 17.75 million tonnes. Exports of raw materials decreased by 60% compared to pre-war 2021. Revenues of Ukrainian mining and metals companies from iron ore exports decreased by 39.4% y/y – to $1.77 billion.

At the same time, the results for 2024 are at risk amid a number of negative factors that put pressure on the mining and metals industry. These include energy supply problems and high electricity costs, staff shortages, weaker global demand and logistical constraints. GMK Center estimates that iron ore exports may decline by 15% or 2.7 million tonnes in the second half of 2024, which means a loss of $250 million in export revenue.

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