Ukraine: Iron ore exports rise over 20% in Jan'23 despite war situation

Ukraine's iron ore exports shipments increased by 21.2% m-o-m to 927,400 tonnes in January 2023 compared to December 2022, according to data published by GMK Center. Ukraine's iron ore exports declined by 75.9 % y-o-y compared to January 2022 on logistics issues because of the conflict with Russia.

It may be noted here that at the beginning of this year, iron ore prices recovered in the Chinese market. As a result, Ukrainian miners were able to increase their revenue from the exports of raw materials during January, 2023.

Slovakia major importer

Ukraine's iron ore exports shipments to Slovakia were recorded at 28.65% of the total exports in January. Czech Republic and Austria were the second and third-largest iron ore importers from Ukraine in January. The latter supplied 28.55% of the material to Czech Republic while 20.1% was shipped to Austria.

Iron ore exports from Ukraine to China were null in January because most of the Ukrainian ports were blocked by the Russian invasion. China was the major iron ore importer from Ukraine before the war but currently amid the port blockade issue, supply is not possible to the country.

Russia's invasion effect on exports

Blockade of seaports following Russia's invasion of Ukraine's land caused domestic steel producers to significantly reduce exports.

Steelmakers are seeking to move their goods via rake movement, but Ukrzaliznytsia (Ukraine Railways) and border crossings are overloaded with freight and unable to handle the volume. Due to the two-fold rise in costs, this mode of freight transportation is not profitable.

Logistics issues are compounded by negative market conditions as iron ore prices are decreasing. Ukrainian mining and processing plants must stop or restrict iron ore production due to the current situation.

Ukraine's major iron ore producers

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 are some of the largest iron ore producers of Ukraine.

Outlook

Ukraine's iron ore exports in the next few months would totally depend on how it negotiate the current situation with Russia.