Ukraine reduced iron ore exports by 26.8% m/m in November 2022

In November 2022, Ukrainian mining companies reduced the export of iron ore by 26.8% compared to the previous month – to 783.2 thousand tons. In monetary terms, the export of iron ore for this period decreased by 29.2% m/m – to $72.6 million. This is evidenced by the customs statistics’ data.

On an annual basis, the export of iron ore in November 2022 decreased by 80.2% in physical terms, and by 76.8% in monetary terms.

In January-November 2022, Ukrainian miners sent 23.2 million tons of iron ore abroad – 42.9% less than in the same period of 2021. The revenue of companies from the export of iron ore for the 11 months of 2022 decreased by 57.1% – to $2.84 billion.

In January-April 2022, the export of Ukrainian iron ore amounted to 12.98 million tons, that is, about 3.2 million tons were shipped per month. At the same time, 10.22 million tons were sent for export in May-November 2022, that is, about 1.46 million tons per month.

In 11 months of 2022, Slovakia consumed the most Ukrainian iron ore – 19.20%. The Czech Republic is in the second place with 16.8%, and Poland is in the third place with 16.41%. Thus, since the beginning of the war, European countries have become the main importers of iron ore from Ukraine, displacing China from this list, which at the beginning of 2022 was the largest consumer of Ukrainian raw materials.

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.

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.

As of December 9, 2022, iron ore prices in Dalian and Singapore were $117.2/t and $109.95/t, respectively. Thus, quotations are increasing for the sixth week in a row on the backgroud of easing restrictions in China.

As GMK Center reported earlier, in 2021, Ukraine reduced the export of iron ore by 4.2% compared to 2020 – to 44.5 million tons. In monetary terms, the indicator increased by 62.8% y/y – up to $6.9 billion.

The major iron ore producers in Ukraine include: Ingulets GOK, Kryvyi Rih Iron Ore Plant, Poltava Mining, Northern GOK, Central GOK, Southern GOK, ArcelorMittal Kryvyi Rih, Sukha Balka GOK and Zaporizhzhia Iron Ore Plant.