Ukraine reduced production of ferroalloys by 49% y/y in 2024

In 2024, Ukrainian ferroalloy enterprises reduced production by 49.4% compared to 2023, to 108.15 thousand tons. The sharp decline is the result of prolonged downtime of key producers in the first half of the year.

Production of silicomanganese decreased by 45% y/y – to 104.15 kt, ferromanganese by 66.5% y/y – to 3.6 kt, and ferrosilicon (45%) by 98.85 y/y – to 0.12 kt.

Zaporizhzhya Ferroalloy Plant (ZFP) produced 26.8 thousand tons of ferroalloys during the year, up 35.2% compared to 2023. In particular, the company significantly increased its production of silicomanganese to 23.1 thousand tons compared to 3.87 thousand tons in 2023.

Nikopol Ferroalloy Plant (NFP) produced 81.35 kt of ferroalloys during the period, down 58% compared to 2023. Silicomanganese production fell by 56.3% y/y – to 81.07 thousand tons.

Manganese concentrate and iron ore sinter production facilities – Pokrovsk Mining and Marganets Mining – were idle in 2024, while in 2023 they produced 160.31 thousand tons of concentrate.

In 2024, exports of ferroalloys from Ukraine decreased by 77.5% compared to 2023, from 344.17 thousand tons to 77.32 thousand tons. Last year, the key consumers of Ukrainian-made ferroalloy products were Poland – 20.94 thousand tons (189.34 thousand tons in 2023), Turkey – 45.69 thousand tons (45.69 thousand tons), Italy – 16.96 thousand tons (18.74 thousand tons).

The performance of the ferroalloy industry in 2024 was affected by the complete shutdown of facilities in the fall of 2023 amid problems with energy supply and rising electricity costs. As a result, in early 2024, exports of the relevant products were at historic lows and almost stopped. In the second half of the year, the figures began to gradually increase as the mill partially resumed operations in May. The company claimed to be operating two furnaces, which is only 7% of its total capacity, and had no visible plans to increase utilization. Since the end of June, the concentrator has been operating at a minimum level. Pokrovsk Mining, Marhanets Mining, and Pobuzhsky Ferronickel Plant (PFP) are idle.

The industry continues to face challenges, with high electricity tariffs and shortages putting particular pressure on producers, as ferroalloy production is an energy-intensive process.