Ukrainian mining companies increased iron ore exports by 21.2% y/y in January 2023

During the month, mining companies of Ukraine shipped 927,400 tons of iron ore to foreign consumers

In January 2023, Ukrainian mining companies increased the export of iron ore by 21.2% compared to December 2022 – up to 927.4 thousand tons. In monetary terms, the export of iron ore for the month increased by 54.8% m/m – up to $110.86 million. This is evidenced by the customs statistics data.

Compared to January 2022, in January 2023 mining companies of Ukraine reduced the export of iron ore by 75.9% in physical terms, and by 67% in monetary terms.

In January 2023, Slovakia consumed the most Ukrainian iron ore – 28.65%. The Czech Republic is in the second place with 28.55%, and Austria is in the third place with 20.1%. At the same time, before the start of the war in Ukraine, the main consumer of Ukrainian iron ore was China, but due to the blockade of Ukrainian ports, the delivery of raw materials to the People’s Republic of China became impossible.

After the invasion of Russia on the territory of Ukraine, domestic steel companies reduced the export of products to a minimum due to the blockade of sea ports. Steelmakers are looking for ways to ship their products through the railway infrastructure, but due to the influx of cargo, Ukrzaliznytsia and border crossings are unable to cope. In addition, this method of cargo delivery is unprofitable due to the two-fold increase in costs.

Problems with logistics are superimposed on unfavorable market conditions – iron ore prices are falling. As a result, Ukrainian mining and processing plants are forced to completely stop or reduce the iron ore production.

It should be noted that from the beginning of 2023, iron ore prices began to recover against the background of a positive trend in the Chinese market. Due to this, Ukrainian metallurgists increased the revenue from the export of raw materials in January compared to December.

As of February 10, 2023, iron ore prices in Dalian and Singapore were $126.98/t and $124.9/t, respectively.

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.