Ukrainian ferroalloy producers reduced exports by 60% m/m in June

In June 2023, Ukrainian ferroalloy enterprises reduced the export of ferroalloys by 59.9% in comparison with the previous month – to 19.4 thousand tons. In monetary terms, deliveries of ferroalloys abroad during this period fell by 59.7% m/m – to $17.3 million. This is evidenced by State Customs Service’s data.

Compared to June 2022, in June 2023, the volume of exports of ferroalloys increased by 2.7 times, and the revenue from deliveries increased by 12.6%.

In January-June 2023, Ukraine exported 275.85 thousand tons of ferroalloys for $240.4 million, which is 12.7% more and 45.2% less, respectively.

The main consumer of Ukrainian ferroalloys in 6 months of 2023 was Poland (61.2% in monetary terms). The share of Turkiye in the total volume of exports was 10.8%. In the third place is the Netherlands – 5.73%.

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 is probably a factor in the decrease in exports in June.

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.