Ukrainian Railways increased iron ore export shipments by 33% m/m in October

The volumes of transportation of ferrous metals for export remained at the level of September

In October 2023, Ukrainian Railways (UZ) increased the transportation of iron ore in the export connection by 33% compared to the previous month – up to 1.92 million tons. Compared to October 2022, the indicator increased by 98%. This is evidenced by the data of the railway operator.

54% of the total volume of export transportation of iron ore followed through land border crossings with the European Union. 46% of raw materials are sent to seaports.

In January-October, Ukrainian Railways exported 14.88 million tons of iron ore, which is 28% less compared to the same period in 2022.

The volume of export transportation of ferrous metals in October 2023 remained at the level of September 2023 and October of 2022 – 331,000 tons. Cargo flow in the direction of ports accounted for 53% of the total transportation index, and through land border crossings – 47%.

According to the main nomenclature, export volumes of transportation were distributed as follows:

• other rolling stock – 166,000 tons;
• pig iron – 94 thousand tons;
• steel billet – 66 thousand tons
• others – 5 thousand tons.

In January-October 2023, UZ transported 3.7 million tons of steel products for export, which is 27% less compared to January-October 2022.

«The low volumes of production and export of products are connected with logistical problems, the unfavorable situation of the world market, as well as with the destruction due to combat operations of the two largest iron and steel enterprises of Ukraine – Azovstal and Ilyich Iron and Steel Works,» UZ notes.

In total, Ukrainian Railways transported 13.58 million tons of cargo in October, which is 12.8% more month-on-month and 12.6% y/y. In January-October, UZ reduced cargo transportation by 7.1% y/y – to 12.1 million tons. 43.3 million tons of cargo was transported in export traffic in 10 months, which is 15.5% less y/y, and in October – 4.9 million tons (+36.2% m/m).

As GMK Center reported earlier, in 2022 Ukrainian Railways reduced transportation of iron and manganese ore by 59.2% compared to 2021 – to 41.7 million tons. Volumes of transportation of ferrous metals last year decreased by 57.8% y/y – to 9.2 million tons. In total, during the year UZ transported 150.6 million tons of cargo, which is 52.1% less compared to 2021.