Iron ore

In January-July, Ukrainian mining companies reduced iron ore shipments to foreign consumers by 47.9% y/y

In July 2023, Ukrainian mining companies reduced iron ore exports by 8.2% compared to June 2023 – to 1.36 mln tons. In monetary terms, iron ore exports for the month decreased by 2.2% m/m – to $140.5 mln. This is evidenced by the data of the State Customs Service.

Compared to July 2022, in July this year, iron ore exports decreased by 13.1%, while export revenue decreased by 29.1%. Iron ore shipments are declining amid unfavorable conditions in the EU market. In particular, seasonally weak steel demand is forcing steel producers to cut capacity, which reduces ore consumption.

In January-July 2023, domestic mining companies shipped 9.68 million tons of iron ore for export worth $1.04 billion. The volume of shipments decreased by 47.9% y/y compared to January-July 2022, while revenue decreased by 56% y/y.

Slovakia consumed the most Ukrainian ore in January-July 2023 – 30.6%. The second place is occupied by the Czech Republic – 23.7%, and the third place is occupied by Poland – 19.6%. Before the war in Ukraine, China was the main consumer of iron ore produced in Ukraine, but due to the blockade of Ukrainian ports, the delivery of raw materials to China became uncompetitive.

As GMK Center reported earlier, in 2022 Ukraine reduced the export of ferrous metals by 45.9% compared to 2021 – to 23.98 million tons. In monetary terms, the indicator fell by 57.8% y/y – to $2.91 billion.

The major iron ore producers in Ukraine include: Ingulets GOK, Kryvyi Rih Iron Ore Plant, Poltava Mining, Northern GOK, Central GOK, Southern GOK, ArcelorMittal Kryvyi Rih, Sukha Balka GOK and Zaporizhzhia Iron Ore Plant.