Ukrainian ferroalloy producers increased exports by 21.5% m/m in July

In July 2023, Ukrainian ferroalloy enterprises increased the export of ferroalloys by 21.5% compared to the previous month – up to 23.6 thousand tons. In monetary terms, the supply of ferroalloys abroad over the specified period increased by 18.2% m/m – up to $20.5 million. This is evidenced by the data State Customs Service.

Compared to July 2022, in July of this year, ferroalloy exports increased by 2.25 times, and revenue from supplies increased by 14.2%.

According to the results of January-July 2023, Ukraine exported 299.5 thousand tons of ferroalloys for $260.9 million, which is 17.3% more and 42.9% less, respectively.

The main consumer of Ukrainian ferroalloys for 7 months of 2023 was Poland (57.2% in monetary terms). Turkey’s share in total exports was 11.4%. In third place is the Netherlands – 6.8%.

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.

Currently, the situation with energy supply has stabilized, but a new problem has appeared for ferroalloyers located in the Dnipropetrovsk region – the undermining of the Kakhovska HPP by Russian troops. In particular, NFP reduces production volumes due to the need to reduce water consumption for the production process due to the shallowing of the Kakhov reservoir. This was probably the factor behind the reduction in exports in June, while in July the situation settled down and exports began to grow.

As GMK Center reported earlier, in 2022 ferroalloys producers 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 factories of the industry produced 399.46 thousand tons of products, which is 32% less y/y.