Resumption After Halt
Ukraine resumed its silico-manganese exports in the second quarter of 2024, following a significant halt in the first quarter due to the closure of the Ukrainian ferro-alloy supply chain caused by ongoing conflict. This halt at the end of 2023 led to zero exports during the initial months of 2024.
Gradual Increase in Export Volumes
According to Ukrainian export data, the country’s silico-manganese exports surged from zero in Q1 to 22,081 tons in Q2. The rise was gradual, with April exports at 206 tons, May at 4,877 tons, and June seeing a substantial increase to 16,998 tons. Despite this rebound, exports remain significantly lower compared to previous operational levels, with Q2 exports down 83% year-on-year.
Challenges Ahead
Ukraine’s ferro-alloy industry, traditionally a significant European producer, is dominated by five major companies, including two manganese ore producers and three ferro-alloy plants. By the end of 2023, all five had ceased operations, leading to a sharp drop in exports. The Nikopol Ferro-alloy Plant and Zaporizhzhia Ferro-alloy Plant, part of the Privat Group, have capacities of 1.2 million tons per year and 400,000 tons per year, respectively. Although exports are resuming, traders do not expect a significant short-term impact on silico-manganese prices due to the limited quantities involved. The industry will continue to face pressure from high energy costs and a shortage of skilled labor due to the ongoing conflict with Russia.
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