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Monthly Ukraine loses more than UAH 1.5 billion in metal exports – media

Photo: Metinvest

Blockage of ports leads to huge export losses in metallurgy of Ukraine, according to a study of a specialized publication.

Ukraine is losing more than $420 million per month due to blocking metal exports through Black Sea ports. This is stated in the MMC Center study.

“The blockage of ports leads to significant export losses in Ukrainian metallurgy: the monthly value of such losses is $420 million. Every month, Ukraine cannot produce and export 1.3 million tons of iron ore , 151 thousand tons of pig iron, 192 thousand tons of semi-finished products and 218 thousand tons of finished metal products,” said the study.

Today only the Danube ports continue to work in Ukraine, but they have a relatively small capacity and cannot solve the existing logistical problems.

“Ukrainian exporters from the metallurgical industry were forced to redirect cargo flows to EU ports, especially to Romania, Bulgaria, Poland, Croatia, Germany. As a result, the average distance to the port of departure for Ukrainian exporters increased five times, and the cost of delivery to the port of destination increased an average of 3-4 times,” the study said.

At the same time, according to the authors, there are no free capacities in the EU seaports to handle all the Ukrainian cargo, so the railways are lined up at the borders of Ukraine with the EU.

“Therefore, the growth of production and the loading of the Ukrainian metallurgical enterprise, the restart of idle capacities, the growth of exports is possible only if the Ukrainian Black Sea ports are unblocked,” believes the MMC Center .

It will be recalled that in September, the President of Ukrmetallurgprom, Oleksandr Kalenkov, said that the Ukrainian metallurgical industry had become unprofitable due to rising electricity prices, wartime logistics problems, and falling prices of world for metal products. The media at the end of September estimated a drop in monthly exports of Ukrainian steel to 77%, or three-quarters of the pre-war level.

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Source: korrespondent

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