Rebounding from September's yearly low, Ukrainian iron ore exports surged in October, marking a 31.5% increase compared to the previous month. Data from the State Customs Service revealed that shipments totaled 2.54 million tons, representing a substantial 65.2% growth from October 2023.
Following a slump to 1.93 million tons in September, export volumes in October nearly matched the year's monthly average of 2.81 million tons. This recovery was driven by a resurgence in demand from key consumers. Notably, shipments to China spiked by 123.5% month-on-month to 1.21 million tons, while exports to Slovakia and Poland increased by 10% and 7.6%, respectively.
From January to October 2024, Ukraine boosted its iron ore exports by an impressive 96% compared to the same period in 2023, reaching 27.79 million tons. Major destinations included China, with 12.01 million tons, Slovakia with 4.06 million tons, and Poland with 4.28 million tons.
Over the ten months, revenues from iron ore exports soared to $2.34 billion, marking a 59.4% year-on-year increase. In October alone, earnings reached $166.83 million, up by 17.2% month-on-month and 14.2% year-on-year.
Despite a third-quarter dip of 25.5% in iron ore exports compared to the previous quarter, the year commenced strongly with 9 million tons in the first quarter and 9.31 million tons in the second quarter.
The resumption of iron ore exports in 2024 stemmed from the establishment of a sea export corridor for iron and steel cargoes in January, enabling Ukrainian mining companies to recommence supplying raw materials to distant markets.
However, ongoing challenges such as energy supply issues, high electricity costs, labor shortages, weakening global demand, and logistical constraints are impeding the industry's growth. Projections suggest a potential 15% decline in iron ore exports, amounting to 2.7 million tons in the latter half of 2024, equating to a loss of $250 million in export revenue.
In 2023, Ukraine experienced a 26% reduction in iron ore exports compared to 2022, reaching 17.75 million tons. This marked a significant 60% decrease from pre-war 2021 levels, resulting in a 39.4% year-on-year decline in revenues for Ukrainian mining and metals companies, totaling $1.77 billion.
Key iron ore producers in Ukraine include Ingulets Mining, Kryvyi Rih Iron Ore Plant, Poltava Mining, Yeristovo Mining, Northern Mining, Central Mining, Southern Mining, ArcelorMittal Kryvyi Rih, Sukha Balka, and Rudomine.
