Ukraine’s ferroalloy industry exported 77.3 ths tons of products in 2024

In 2024, the Ukrainian ferroalloy industry reduced exports by 77.5% compared to 2023 – from 344.17 thousand tons to 77.32 thousand tons. In 2022, this figure was 349.56 thousand tons, and in 2021 – 668.54 thousand tons. This is based on GMK Center’s calculations based on data from the State Customs Service of Ukraine.

Last year, the key consumers of Ukrainian-made ferroalloy products were Poland – 20.94 kt (189.34 kt in 2023), Turkey – 45.69 kt (45.69 kt), and Italy – 16.96 kt (18.74 kt).

The sharp decline in 2024 is the result of the complete shutdown of ferroalloy enterprises 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, exports began to grow gradually as Zaporizhzhia Ferroalloy Plant (ZFP) partially resumed operations in May. The plant reported 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 NGF has also been operating at a minimum level. Pokrovsk Mining, Marganetsk Mining, and Pobuzhsky Ferronickel Plant (PFP) are idle.

In December 2024, ferroalloy companies exported 4.87 thousand tons of products, up 94.9% compared to December 2023 and 21.3% less than in the previous month.

At the end of the year, shipments slowed again to their lowest level since April, indicating a deterioration in the industry’s condition and prospects. In particular, Ukraine’s heavy industry is facing many challenges, including lower demand for products, problems with energy supply, staff shortages due to mobilization, etc. The ferroalloys industry is particularly under pressure from high electricity tariffs and energy shortages, as the production of ferroalloys is an energy-intensive process.

Revenue from ferroalloy exports in 2024 decreased by 70.2% y/y – to $88.63 million, while in December it increased by 84.4% y/y and fell by 20.1% m/m – to $4.66 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.