Ukraine: Ferro alloys exports drop 45% m-o-m in August

Ukrainian ferro alloys exports inched down their products abroad in August 2023. In this month they decreased their exports of ferro alloys by 45% m-o-m to 12,990 t in August 2023, compared to July.

Compared to August 2022, the exports y-o-y of ferro alloys in August 2023 lowered by 23.4%. The revenue from these exports also went down by 56.5%, whereas from January to August 2023, Ukraine exported a total of 312,440 t.

Poland was the biggest buyer of Ukrainian ferro alloys, accounted for 55.9% of the total exports in terms of money. Turkiye came in second with a 12.2% share, followed by the Netherlands with 8.1%.

In the first quarter of 2023 (April-June), the production of ferro alloys in Ukraine decreased by 2.7 times compared to the same period last year the reasons for this was the Russian missile strikes on Ukrainian energy infrastructure at the end of 2022. These strikes caused power outages and disrupted the industry's operations.

Meanwhile, in 2022, the ferroalloy industry witnessed a set back. They reduced their exports by 48% compared to the previous year. It was a difficult time for the industry. In the same year, the factories produced 32% less ferroalloys compared to the previous year.

Why exports decreased?

Russian missile strikes: Because of the missile strikes that caused power outages and disrupted the supply of raw materials, affecting the industry's operations, the first quarter of 2023, Ukrainian ferroalloy producers reduced their production by 2.7 times compared to the same period in the previous year.

Power outage effect: The Pobuzhsky Ferronickel Plant, had to shut down because of the power outages. Additionally, the company relies on imported raw materials, which were also affected by the port blockade.

Source: GMK Center