Ukraine’s iron ore exports grew by 45% in June

In June 2020, Ukrainian mining & metals companies increased exports of iron ore and iron ore concentrates by 45% to 4.3 million tons against June last year.

In monetary terms, iron ore exports in June grew by 23.8% to $353 million against May 2019,

according to the customs statistics.

Exports of iron ore and iron ore concentrates in June increased by 31.9% in monetary terms against May 2020. Exports of iron ore and iron ore concentrates increased by 24.7% in physical terms.

In Q2, Ukrainian mining & metals companies exported 12 million tons of iron ore worth $981.3 million, respectively, up from 6.8% and 11.3% in Q1.

In H1, Ukraine exported 23.1 million tons of iron ore, 16.8% up from H1 2019.

In January–June, revenue of Ukraine’s mining companies from exports of iron ore grew by 8.8% to $1.9 billion compared to the same period of the previous year.

China remains the main consumer of Ukrainian iron ore. Its share in Ukraine’s exports was 61.89% in H1. Poland ranked second (9.15%), followed by the Czech Republic (6.59%).

An increase in exports of Ukrainian iron ore in H1 was due to unfavorable prices in the Chinese market. In H1, iron ore prices in China have been growing due to recovery in demand for raw materials in the country following the lifting of the quarantine restrictions. As a result, a 29% hike was recorded in iron ore futures on the Dalian Commodity Exchange in June.

Besides, the market was affected by anxiety caused by interruptions in iron ore supplies from Brazil. The coronavirus pandemic in Brazil has led to a cut in production.

Nevertheless, ore prices in China have stabilized by late June due to a lower demand for steel. Conversely, in early July, prices started to fall amid growing supplies of raw materials. Iron ore producers currently expect a decrease in prices for iron ore in H2.

In 2019, iron ore exports grew by 8.1% in physical terms to 39.9 million tons and by 18.5% to $3.398 billion in monetary terms against 2018.

The key iron ore producers in Ukraine include: Sukha Balka GOK (Mining and Processing Plant), Zaporizhzhia Iron Ore Plant, Ingulets GOK, Kryvyi Rih Iron Ore Plant, Poltava Mining, Northern GOK, Central GOK, Southern GOK, ArcelorMittal Kryvyi Rih.