Winter shutdown of Ukrainian ferroalloy factories may affect global supply

According to the investigation of Hainan West Asia Group,Ukraine's ferroalloy production ceased operations in early November 2023. PGOK and MGOK both stopped mining and processing manganese ore in October. NFP and ZFP production blocks will also cease from early November.

The reasons for the closure of ferroalloy production capacity are as follows:

-Lack of guarantee for sustained winter energy and water supply

-The need for maintenance work

- Product sales and logistics issues

Representatives of some large enterprises in the Ukrainian ferroalloy industry:

-Nikopol Ferroalloy Plant (NFP) - with a capacity of 1.2 mnt of products per year.

-Zaporizhzhia Ferro alloy Plant (ZFP) - up to 400,000 t of products per year.

-Pokrovsk Mining and Processing Plant (PGOK) - processing up to 9.3 mnt of manganese ore per year.

-Marganets Mining and Processing Plant (MGOK) - processing up to 7 mnt of manganese ore per year.

However, the war resulted in a significant decrease in the industry's production. From January to September 2023, Ukraine's ferroalloy production decreased by 57.5% compared to the same period last year, reaching 197100 tons