Second consecutive month of low ferroalloy exports from Ukraine

During January-February 2024, Ukrainian ferroalloy exports remained at a record low, with only 540 t shipped abroad. In February, 300 t were exported, showing a 29.8% increase from the previous month but a significant 99.3% decrease from February 2023.

The overall decline in exports compared to January-February 2023 was drastic, with a 99.4% decrease in volume and a 97.9% decrease in revenue. Poland received the majority of exports at 70.1%, followed by Uzbekistan at 13.8% and the Netherlands at 6.5%.

Reasons that drove declined exports were:

Chronic shutdown of ferro alloys industry: The decline in Ukrainian ferroalloy exports, which has been ongoing since August last year, can be attributed to the complete shutdown of the country's ferroalloy industry since November 2023.

Multiple factors at play: Factors such as the industry's proximity to the front line, decreasing prices for ferroalloys, high production costs, and challenges in personnel mobilisation have all contributed to a significant decrease in ferroalloy production in 2024 compared to the previous year.

Outlook

Looking ahead to 2024, the Executive Director of the Ukrainian ferroalloy Association (UkrFA), Sergiy Kudryavtsev, highlighted that the industry's future will hinge on factors like shelling, logistics, and access to affordable electricity.

Source: GMK Center