Ukraine reduced ore exports to the lowest level since the beginning of the year in September

The fall in global demand and prices for raw materials had a negative impact on shipment volumes

In September 2024, Ukrainian mining companies reduced the export of iron ore to a minimum since the beginning of the year – 1.93 million tons. This is 23.2% less compared to the previous month, and 34.5% more y/y. This is evidenced by the data of the State Customs Service.

September export volumes decreased significantly compared to the average monthly figure (2.81 million tons) in the current year amid a significant decline in global demand and prices for raw materials during this period. This was caused primarily by a decrease in activity in China, the largest steel producer and consumer of ferrous metals in the world. Weakening of consumption was also observed on the part of the EU countries. Thus, in September, 541.93 thousand tons of ore were exported to China (-45.7% m/m), to Slovakia – 291.46 thousand tons (-31% m/m), and to Poland – 382.84 thousand tons (-24.9% m/m).

During January-September 2024, Ukraine increased its export of iron ore by 99.7% compared to the same period in 2023 – to 25.25 million tons. The main part of production is directed to China – 10.8 million tons, Slovakia – 3.74 million tons, and Poland – 3.87 million tons.

At the same time, in the third quarter, the export of iron ore from Ukraine decreased by 25.5% compared to the previous quarter – to 6.93 million tons. In the second quarter, the indicator was at the level of 9.31 million tons (+3.4% q/q), and in the first – 9 million tons (+76.3% q/q).

The recovery of iron ore exports this year is facilitated by the opening of the sea export corridor for iron and steel cargoes since January. Thanks to this, Ukrainian mining companies resumed supplies of raw materials to distant markets.

Revenue from iron ore exports for 9 months amounted to $2.17 billion (+64.4% y/y), and in September – $142.36 million (-29.3% m/m; +0.1 % y/y).

As GMK Center reported earlier, in 2023, Ukraine reduced the export of iron ore by 26% compared to 2022 – to 17.75 million tons. Compared to the pre-war year 2021, the export of raw materials decreased by 60%. The revenue of Ukrainian steel companies from the export of iron ore decreased by 39.4% y/y – to $1.77 billion.

At the same time, the results of 2024 are at risk amid number of negative factors that put pressure on the iron and steel industry. In particular, these are problems with energy supply and the high cost of electricity, shortage of personnel, weakening of global demand and logistical constraints.According to GMK Center’s estimates, the decrease in the export of iron ore in the second half of 2024 may amount to 15% or 2.7 million tons, which means a loss of $250 million in export revenue.

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