Ukraine: November sees a 14% m-o-m drop in ferro alloys exports

Ukrainian ferro alloys exports dropped their products abroad in November 2023. They decreased their exports of ferro alloys by 14% m-o-m to 7,670 t in November 2023, compared to October.

Compared to November 2022, the exports y-o-y of ferro alloys in November 2023 dwelled down by 73%. Meanwhile, the revenue from these exports went down by 19%, whereas, from January to November 2023, Ukraine exported a total of 341,700 t.

Poland was the biggest buyer of Ukrainian ferro alloys in 11 months of 2023, accounted 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 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 due to the Russian missile strikes on Ukrainian energy infrastructure at the end of 2022. These strikes resulted in the industry's enterprises temporarily, partially or completely stopped working.

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.

Some mining and processing plants, such as NFP, ZFP, Marganetsk, and Pokrovsk, have resumed their work after the stabilization of energy supply. However, the Pobuzhsky Ferro nickel Plant has not been able to produce products since November 2022 due to its dependence on imported raw materials and the blockade of sea ports.

Why exports decreased?

Production halt: In early November 2023, ferro alloy companies that had resumed operations announced that they would suspend production until at least spring 2024. This decision was made due to concerns about possible power outages during winter and problems with water supply. However, these companies assure that they have enough raw materials and products in their warehouses to meet customer demands.

Falling Demand: As a result of the shutdown of producers and a seasonal decrease in demand from export consumers, the export of Ukrainian ferroalloy products is expected to continue declining until the end of the year.

Source: GMK Center