Ukraine increased exports of ferroalloys to 5-month high in May

In May 2024, Ukrainian ferroalloy enterprises exported 5.53 thousand tons of products, which is 88.6% less than in May 2023, but several times higher than in the previous month (0.45 thousand tons). This is evidenced by the data of the State Customs Service.

Revenues from exports of ferroalloys decreased by 86.3% y/y for the month, but increased 4.7 times month-on-month – to $5.88 million.

May export volumes are the highest since November 2023. Between December 2023 and April 2024, shipments of products by Ukrainian ferroalloy companies showed a downward trend and fell to record lows (0.2-0.4 thousand tons), as the industry came to a complete standstill last November, in particular due to proximity to the front line, falling prices for ferroalloys, high production costs and problems with booking personnel for mobilization.

According to Sergiy Kudryavtsev, executive director of the Ukrainian Ferroalloy Producers Association (UkrFA), Zaporizhzhia Ferroalloy Plant (ZFP) resumed operations in May 2024. This is likely to have contributed to the increase in exports. Currently, the company operates two furnaces, which is only 7% of its total capacity, and has no visible plans to increase its utilization. At the same time, Nikopol Ferroalloy Plant (NFP) is also considering the possibility of launching. Pokrovsk Mining, Marganets Mining, and Pobuzhsky Ferronickel Plant (PFP) are idle.

Thus, in January-May 2024, Ukrainian ferroalloy enterprises exported 6.67 thousand tons of products compared to 256.42 thousand tons a year earlier (-95.7% y/y). Export revenue decreased by 95.7% y/y to $9.55 million.

The bulk of ferroalloys were shipped to Poland – 43.2% (in monetary terms), Romania – 35.5%, and Moldova – 5.3%.

As GMK Center reported earlier, in 2023, Ukraine’s production of ferroalloys decreased by 57.4% compared to 2022. Exports fell by 4.9% y/y – to 344.2 thousand tons. Compared to pre-war 2021, shipments of ferroalloys abroad decreased by 48.5%, or 324.4 thousand tons. Poland was the largest consumer of Ukrainian-made ferroalloys in 2023, accounting for 52.8% in monetary terms. Turkey accounted for 14.1% of export shipments and the Netherlands – for 8.5%.

In 2024, according to Sergiy Kudryavtsev, the state of Ukraine’s ferroalloy industry will depend on three factors: shelling, logistics, and affordable electricity.