Ukraine increased iron ore exports by 31.5% m/m in October

Shipments recovered after reaching the lowest since the beginning of the year in September

In October 2024, Ukrainian mining companies increased iron ore exports by 31.5% compared to the previous month – to 2.54 million tons. Exports increased by 65.2% compared to October 2023. This is evidenced by data from the State Customs Service.

October export volumes almost recovered to the monthly average this year (2.81 million tons) after falling to a year-to-date low in September (1.93 million tons). This was made possible by the recovery in demand from key consumers. In particular, 1.21 million tons of iron ore were shipped to China (+123.5% m/m), 320.26 thousand tons – to Slovakia (+10%), and 412.15 thousand tons – to Poland (+7.6%).

In January-October 2024, Ukraine increased its iron ore exports by 96% compared to the same period in 2023, to 27.79 million tons. Most of the products were exported to China – 12.01 million tons, Slovakia – 4.06 million tons, and Poland – 4.28 million tons.

Revenues from iron ore exports amounted to $2.34 billion over 10 months (+59.4% y/y), and in October – $166.83 million (+17.2% m/m; +14.2% y/y).

In the third quarter of the year, the exports of iron ore from Ukraine decreased by 25.5% compared to the previous quarter to 6.93 million tons. In the second quarter, the figure was 9.31 million tons (+3.4% q/q), and in the first quarter – 9 million tons (+76.3% q/q).

The resumption of iron ore exports this year was facilitated by the opening of a sea export corridor for iron and steel cargoes in January. As a result, Ukrainian mining companies resumed supplies of raw materials to distant markets.

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

As GMK Center reported earlier, in 2023, Ukraine reduced iron ore exports by 26% compared to 2022, to 17.75 million tons. 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% yoy to $1.77 billion.

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