Ukraine: Ferro alloys exports decrease 5% y-o-y in CY'23

Ukrainian ferro alloys exports decreased in calendar year 2023 (CY'23). Exports of ferro alloys decreased by 5% y-o-y to 344,200 t in CY'23, compared to CY'22. The exports declined by 49% when compared to pre-war year 2021.

In CY'23, export revenues for domestic enterprises too decreased by 49% to $297.6 million. The average monthly export volume of ferro alloys for the year amounted to 28,700 t, compared to 30,150 t in 2022.

Poland remained as the prominent buyer of Ukrainian ferro alloys in 12 months of 2023, accounting for 53% of the total exports in terms of money. Turkiye came in second with a 14% share, followed by the Netherlands with 9%.

In December 2023, exports fell m-o-m by 67% to 2,490 t which was 7,670 t in November 2023. Meanwhile, revenues from exports dropped by 59% m-o-m to $2.53 million.

Why exports decreased?

The overall exports started to shrank sharply from October 2023 because of the crumbled situation in the industry. In early November, the country witnessed virtual shutdown in the entire vertically integrated ferro alloys plants.

Suspension of production: In October, Pokrovsky Mining and Marganetsky Mining suspended mining and processing of manganese ore. Whereas in November, Nikopol ferro alloy Plant and Zaporizhzhia Ferroalloy Plant also shut down their production facilities. Pobuzhsky Ferro nickel Plant has not been producing since November 2022, as the company is dependent on imported raw materials and cannot ensure a stable flow of them given the difficulties in delivering them through seaports.

Uncertain working atmosphere: The uncertainty is due to the lack of guarantees of constant energy and water supply in winter, the need for repairs, and problems with sales and logistics. Thus, the suspension of production since November threatens to completely halt exports of ferro alloys.

Source: GMK Center