In 2024, Ukrainian ferroalloy plants reduced production by 49.4% compared to the previous year, totaling 108.2 thousand tons, according to the Ukrainian Ferroalloy Producers Association.
Production declines by type:
- Silicomanganese: down 45% to 104.2 thousand tons
- Ferromanganese: down 66.5% to 3.6 thousand tons
- Ferrosilicon (converted to 45%) and other ferroalloys: 0.12 and 0.28 tons, respectively
- No production of metallic manganese or manganese concentrate
Exports also dropped 4.5 times to 77.3 thousand tons from 344.2 thousand tons. The largest importers were Poland (27.4% of export value), Turkey (21.5%), and Italy (19.8%).
Key Current Issues in the Ukrainian Ferroalloy Industry
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Proximity to Active Combat Zones
- Most enterprises are located in areas of active hostilities, posing risks to both equipment and personnel.
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High Electricity Costs
- Industrial electricity prices in Ukraine are often several times higher than in developed European countries.
- Companies must prepay 100% for electricity a month in advance, tying up significant working capital.
- Power outages due to Russian strikes lead to uncompensated losses.
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Labor Shortages
- Ongoing mobilization and employee relocation to safer regions reduce workforce availability.
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Logistics Challenges
- High port handling costs in Odesa’s ports.
- The Danube is an alternative, but transport costs are even higher due to longer rail distances and limited vessel capacity.
- Current logistics rely on exporting finished products to Romania via the Danube and importing small volumes of ore under existing contracts.
