Ukraine: Ferroalloy production decreased by over 50% in fiscal year 23, with uncertain prospects

According to a survey by Hainan West Asia Group, the production of Ukrainian ferroalloy manufacturers decreased significantly by 57% in 2023 compared to the previous year.

This significant decline is mainly attributed to various factors, including intensified military activities, depreciation of ferroalloys, and logistics related challenges.

In 2023, Ukraine's ferroalloy exports decreased by 4.9% compared to 2022. Poland was the main consumer of Ukrainian ferroalloys in 2023, accounting for 52.8% of the total exports in currency terms. Türkiye and the Netherlands followed, accounting for 14.1% and 8.5% of export shipments, respectively.

Looking ahead to the future

The future of Ukraine's ferroalloy industry in 2024 depends on three key factors: ongoing military conflict, logistics, and electricity. Unless these issues are resolved, it is unlikely that these ferroalloy factories will resume operations.