Ukraine’s ferro alloys sector showed strong signs of recovery after a turbulent 2024, driven by renewed export demand and the resumption of production. According to GMK Center data based on customs figures, ferro alloy exports totaled 54,800 t between January and June 2025- up 126.3% y-o-y. Key markets included Algeria, Poland, and Turkey, signaling improving trade flows and growing international interest in Ukrainian ferro alloy products.
Factors behind the upward momentum:
Demand rebounds across key markets: Algeria led all importers with 15,280 t, followed by Poland with 14,290 t and Turkiye at 12,980 t. Each of these countries more than doubled their purchases from the previous year, while Italy also significantly increased imports. The rebound suggests that Ukraine’s ferro alloy industry is regaining competitiveness abroad, supported by reopened logistics channels and improved production stability.
Export momentum shows mixed short-term trends: In the second quarter of 2025, exports totaled 27,090 t, a 15.2% increase y-o-y but down 2.1% from the first quarter. June saw a notable jump to 9,770 t, up 61.8% from May. Algeria’s sharp return to importing, alongside Turkey’s growing demand, provided momentum, while lower figures from Poland and Italy hinted at ongoing volatility in regional trade activity.
Revenue growth boosts industry confidence: Export earnings reached $61.13 million in the first half of 2025, more than doubling last year’s $29.34 million. June alone brought in $11.22 million, up 54.9% month-on-month, although still 43.3% below June 2024. Despite financial improvement, the sector faces continued strain from high electricity costs and unreliable energy supply, which remain major barriers to long-term production efficiency.
Outlook
Ukraine’s ferro alloys industry is on a tentative path to recovery. While export volumes and revenue have improved significantly, the sector’s future hinges on stabilizing domestic energy supply and reducing production costs. If these challenges are addressed, the current momentum could mark the beginning of a sustained industrial revival.
Note: This article has been written in accordance with a content exchange agreement between GMK Center and BigMint.
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