Ukrainian ferroalloy producers exported 7.7 thousand tons of products in November

In November 2023, Ukrainian ferroalloy enterprises reduced exports of ferroalloys by 14.3% compared to the previous month – to 7.67 thousand tons. In monetary terms, the supply of ferroalloys abroad fell by 19.2% m/m – to $6.11 million during the period. This is evidenced by data from the State Customs Service.

Compared to November 2022, in November 2023, exports of ferroalloys decreased by 73.3%, while revenue from supplies fell by 82.1%.

In January-November 2023, Ukraine exported 341.7 thousand tons of ferroalloys worth $295.1 million, up 3.2% and 46.4% year-on-year, respectively.

Poland was the main consumer of Ukrainian ferroalloys in 11 months of 2023 (53.2% in monetary terms). Turkiye’s share in total exports amounted to 13.6%. The Netherlands ranked third with 8.5%.

In the first quarter of 2023, Ukrainian ferroalloy companies reduced production by 2.7 times compared to the same period last year, to 70 thousand tons.

Russian missile attacks on Ukraine’s energy infrastructure at the end of last year significantly worsened the situation for the ferroalloy industry, which is more dependent on stable energy supply than others. As a result of these strikes, companies in the industry temporarily, partially or completely shut down operations.

NFP, ZFP, Marganetsk and Pokrovsk mining and processing plants have resumed work after the stabilization of energy supply, and Pobuzhsky Ferronickel Plant has not produced products since November 2022, as the enterprise depends on imported raw materials and cannot ensure its stable flow in the conditions of blockade of sea ports.

In early November 2023, ferroalloy companies that resumed operations last year announced that they would suspend production at least until spring 2024. In particular, Marganetsk and Pokrovsk Minings, as well as ZFP and NFP, stated that production processes were suspended due to possible power outages in winter and problems with water supply. The companies say they have enough raw materials and products in their warehouses to meet the needs of their customers.

Thus, the export of Ukrainian ferroalloy products will continue to decrease until the end of the year against the background of the shutdown of producers, as well as a seasonal decrease in demand from export consumers.

As GMK Center reported earlier, in 2022 ferroalloys of Ukraine reduced exports 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.