Ukrainian steel industry increased iron ore exports by 7% m/m in October

In January-October, mining companies of Ukraine reduced shipments of ferrous metals to foreign consumers by 36.6% y/y

In October 2023, Ukrainian mining companies increased the export of iron ore by 7% compared to September 2023 – up to 1.54 million tons. In monetary terms, iron ore exports increased by 2.7% m/m for the month – up to $146.05 million. This is evidenced by State Customs Service’s data.

In comparison with October 2022, in October 2023 the export of iron ore increased by 43.8%, and the revenue from exports increased by 42.4%. Thus, shipments of iron ore for export increased to the highest level since April 2023, when steel sector of Ukraine exported 1.67 million tons of iron ore.

During January-October 2023, domestic mining companies shipped 14.18 million tons of iron ore worth $1.47 billion for export. Shipment volumes decreased by 36.8% compared to January-October 2022, and revenue by 46.9% y/y.

In January-October 2023, Slovakia consumed the most Ukrainian iron ore – 29%. The Czech Republic is in the second place with 21.6%, and Poland is in the third place with 20.5%. 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 uncompetitive.

At the same time, a temporary corridor to and from the ports of Greater Odesa was launched in August this year. During the two months of the corridor’s operation, 5 vessels exported approximately 88 thousand tons of steel products and over 172 thousand tons of iron ore from Ukrainian ports. Some of the products could have been shipped to China, which could eventually restore China’s position in Ukrainian exports.

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.