Ukrainian ferroalloy producers decreased their exports by 45% m/m in August

In August 2023, Ukrainian ferroalloy enterprises reduced the export of ferroalloys by 45% compared to the previous month – to 12.99 thousand tons. In monetary terms, deliveries of ferroalloys abroad during this period fell by 49.1% m/m – to $10.4 million. This is evidenced by State Customs Service’s data.

Compared to August 2022, in August 2023, the volume of exports of ferroalloys fell by 23.4%, and the revenue from deliveries fell by 56.5%.

In January-August 2023, Ukraine exported 312.44 thousand tons of ferroalloys for $271.28 million, which is 14.8% more and 43.6% less, respectively.

The main consumer of Ukrainian ferroalloys in 8 months of 2023 was Poland (55.9% in monetary terms). The share of Turkiye in the total volume of exports was 12.2%. In the third place is the Netherlands – 8.1%.

In the first quarter of 2023, ferroalloy enterprises of Ukraine reduced production by 2.7 times compared to the same period last year – to 70,000 tons.

Russian missile strikes on Ukrainian energy infrastructure at the end of 2022 significantly worsened the situation for the ferroalloy industry, which depends more than others on stable energy supply. As a result of these strikes, the enterprises of the industry temporarily stopped their work partially or completely.

The Pobuzhsky Ferronickel Plant was forced to shut down due to power outages. In addition, the company depends on imported raw materials, so it cannot count on its stable flow due to the blockade of the ports.

As GMK Center reported earlier, in 2022 ferroalloy producer of Ukraine reduced exports of production by 47.7% compared to 2021 – to 349.6 thousand tons. Revenue from the export of ferroalloys decreased by 46% y/y – to $564.14 million In January-August 2022 plants of the industry produced 399.46 thousand tons of products, which is 32% less y/y.