Ukrainian steel industry reduced iron ore exports by 6% m/m in September

In January-September, mining companies of Ukraine reduced their shipments of ferrous metals to foreign consumers by 40.8% y/y

In September 2023, Ukrainian mining companies reduced the export of iron ore by 6% compared to August 2023 – to 1.44 million tons. In monetary terms, iron ore exports decreased by 1.5% m/m for the month – to $142.2 million. This is evidenced by the data of State Customs Service.

In comparison with September 2022, in September 2023, the export of iron ore increased by 5.9%, and the revenue from exports increased by 3.9%. Shipments of iron ore in September slightly decreased in the monthly dynamics amid filling the needs of EU steelmakers in August, as well as unrealistic expectations of the industry regarding the improvement of demand for steel in the autumn period.

During January-September 2023, domestic mining companies shipped 12.64 million tons of iron ore worth $1.32 billion for export. Shipment volumes decreased by 40.8% compared to January-September 2022, and revenue by 50.4% y/y.

In January-September 2023, Slovakia consumed the most Ukrainian iron ore – 29.3%. In the second place is the Czech Republic – 22.6%, and in the third – Poland – 19.8%. 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, since August 2023, a temporary corridor in the direction from and to the ports of Great Odesa began to operate. During the two months of operation of the corridor, 5 vessels transported approximately 88 thousand tons of steel products and more than 172 thousand tons of iron ore from Ukrainian ports. Part of the products could be shipped to China, which over time may 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.