Ferroalloy Enterprises Were Loaded By 30% At End Of 2022 - UkrFA

The Ukrainian Ferroalloy Producers Association (UkrFA) notes that the average load of ferroalloys at the end of 2022 was 30%.

Serhii Kudriavtsev, the executive director of the UkrFA, announced this in an interview with GMK Center.

"The average occupancy of industry businesses at the end of 2022 was at 30% compared to 60-70% in April-May... Given the strong energy dependence and high specific gravity of the cost of electricity in the production of ferroalloys, the situation in the industry is extremely difficult. For example, since the end of October, the Pobuzhsky Ferronickel Plant (PFP) has been forced to stop production due to damage to associated energy facilities. In addition, this enterprise, which depends on imported raw materials, now cannot count on its stable flow due to port blocking," he said.

According to Kudriavtsev, the situation at the Nikopol Ferroalloys Plant and Zaporizhzhia Ferroalloys Plant is also extremely difficult - enterprises operate with minimal loading.

He noted that plants are in the balancing market system, so they can increase or reduce their energy supply at any time.

According to Kudriavtsev, ferroalloy enterprises import raw materials and export products across the western borders of Ukraine, while it is important to take into account the high cost of logistics, in particular the increase in railway tariffs of the Ukrzaliznytsia Joint Stock Company, and constant delays in cargo on the way.

As Ukrainian News Agency earlier reported, in 2022 steel production decreased 3.4 times, or by 15,103,000 tons, to 6,263,000 tons compared to 2021.