In the first quarter of 2024, Ukrainian ferroalloy enterprises exported a record low volume of just 0.69 thousand tons, plummeting by 99.5% compared to the same period a year earlier. Export revenue for the period also dropped dramatically, down 98.1% year-on-year to $2.42 million.
The situation worsened in March, when Ukraine's ferroalloy industry exported a mere 0.15 thousand tons of products, a 51.8% decline from February and a staggering 99.7% decrease compared to March 2023. Export revenue for the month fell by 36.2% month-on-month and 98.5% year-on-year, reaching a record low of $607,000.
The bulk of the limited exports were shipped to Poland, accounting for 74.1% of the total in monetary terms. Uzbekistan and the Netherlands were the next largest destinations, receiving 13.8% and 4.8% of the exports, respectively.
The complete shutdown of Ukraine's ferroalloy industry since November 2023 is the primary reason for the absence of exports, which have been gradually declining since August last year. Factors such as proximity to the front line, falling ferroalloy prices, high production costs, and personnel mobilization issues have led to a 57.4% decrease in ferroalloy production in 2023 compared to 2022.
Looking ahead, the state of Ukraine's ferroalloy industry in 2024 will depend on three key factors: shelling, logistics, and available electricity. Currently, Ukrainian ferroalloy companies do not have clear plans to resume production in the near term, with some expressing cautious optimism and others having no decisions on restarting operations.
