Ukraine’s ferroalloy industry exported 72.4 thousand tons of products in 11 months

In January-November 2024, Ukraine’s ferroalloy industry reduced exports by 78.8% compared to the same period in 2023, to 72.45 thousand tons (341.67 thousand tons in January-November 2023). This is evidenced by the data of the State Customs Service of Ukraine.

In November, Ukrainian producers exported 6.19 thousand tons of ferroalloys, down 12.8% month-on-month and 19.3% year-on-year. Shipments fell to their lowest level since May this year.

The main consumers of the products are Poland – 19.37 thousand tons for 11 months, and 3.17 thousand tons in November (+54.7% m/m), Turkey – 15.31 thousand tons (did not import in November), and Italy – 14.46 thousand tons (did not import in November).

Shipments of ferroalloys have resumed since May this year, after almost stopping in January-April due to the partial resumption of operations at Zaporizhzhia Ferroalloy Plant (ZFP). As previously reported, the plant is operating two furnaces, which is only 7% of its total capacity, and has no visible plans to increase its utilization. Since the end of June, the concentrator has also been operating at a minimum level. Pokrovsk Mining, Marhanets Mining, and Pobuzhsky Ferronickel Plant (PFP) are idle.

At the same time, Ukraine’s heavy industry is facing many challenges, including a decline in demand for products, problems with energy supply, a shortage of personnel due to mobilization, etc. The ferroalloys industry is particularly pressured by high electricity tariffs and energy shortages, as the production of ferroalloys is an energy-intensive process.

Revenue from ferroalloy exports in 11 months of 2024 decreased by 71.5% y/y – to $83.97 million, and in November it fell by 4.5% y/y and 18.7% m/m – to $5.83 million.

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 January-August 2024, the production of ferroalloys decreased by 4.6 times y/y – to 41.05 thousand tons.