Most of the exports were directed to Poland

In 2023, Ukrainian ferroalloy companies reduced their exports by 4.9% compared to 2022, to 344.2 thousand tons. Compared to the pre-war year 2021, shipments of ferroalloys abroad decreased by 48.5%, or 324.4 thousand tons. This is evidenced by data from the State Customs Service.

Revenue of domestic enterprises from exports of ferroalloys last year decreased by 48.9% compared to 2022 – to $297.6 million. The figure fell by 71.5% compared to 2021.

In December 2023, Ukraine exported 2.49 thousand tons of ferroalloys, down 67.4% month-on-month and 91.9% y/y. Export revenues for the month fell by 58.6% m/m and 92.1% y/y – to $2.53 million. The average monthly export volume of ferroalloys for the year amounted to 28.7 thousand tons, compared to 30.15 thousand tons in 2022.

Starting in October 2023, exports of ferroalloy products began to decline sharply – to 8.9 thousand tons in October, 7.7 thousand tons in November, and 2.5 thousand tons in December. At the same time, in January-September, the average monthly export volume was 36.15 thousand tons. The figures for October-December are record lows, with exports of ferroalloys not falling below 6.5 thousand tons per month even at the beginning of the full-scale invasion.

The significant decline in ferroalloy exports at the end of 2023 was caused by the deteriorating situation in the industry. In early November, Ukraine’s entire vertically integrated ferroalloy complex virtually shut down. In October, Pokrovsky Mining and Marganetsky Mining suspended mining and processing of manganese ore. In early November, Nikopol Ferroalloy Plant and Zaporizhzhia Ferroalloy Plant also shut down their production facilities. 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 them given the difficulties in delivering them through seaports.

The main reasons for the shutdown include the lack of guarantees of constant energy and water supply in winter, the need for repairs, and problems with sales and logistics. Thus, the suspension of production since November threatens to completely halt exports of ferroalloys.

Poland was the largest consumer of Ukrainian-made ferroalloys in 2023, accounting for 52.8% in monetary terms. Turkiye accounted for 14.1% of export shipments and the Netherlands for 8.5%. In 2022, Poland accounted for 53.2%, the Netherlands – for 13.1%, and Romania – for 5.7%. At the same time, in 2021, the main export destinations for ferroalloys were Turkiye – 19.9%, Italy – 13.5%, and China – 11.3%.

As GMK Center reported earlier, in 2022, Ukrainian ferroalloy producers reduced their exports by 47.7% compared to 2021, to 349.6 thousand tons. Revenue from ferroalloy exports decreased by 46% y/y – to $564.14 million. In January-August 2022, the industry’s plants produced 399.46 thousand tons of products, down 32% y/y.