During the first half-year of 1999, Ukrainian ferroalloys were exported to almost all the regions worldwide.

FERROALLOYS

FERROALLOYS

Vitaliy GNATUSH, expert with “DerzhZovnishInform”

During the first half-year of 1999, Ukrainian ferroalloys were exported
to almost all the regions worldwide.

PRODUCTION

In the first half of 1999, metal output from the Ukrainian ferroalloy
manufacturers (Nikopol, Zaporozhje and Stakhanov Ferroalloy Plants) accounted for about
474 ths. tons, which is roughly 99.6% against the respective period of the year before. In
the present year, average monthly production of ferroalloys equals 79.0 ths. tons, nearly
6% up from the 1998’ monthly average of 74.4 ths. tons.

EXPORT

In January-June 1999, export turnover of Ukrainian ferroalloys amounted to
244.079 ths. tons (about USD 93.2 mln). In the present year, monthly export of ferroalloys
averages 40.7 ths. tons, down from 47.2 ths. tons in July-December 1998 and 54.6 ths. tons
in January-June 1998. In 1999, ferroalloy export low was registered in February (32.7 ths.
tons) and high – in March (48.3 ths. tons) (see figure).

It should also be mentioned that, in the first half of 1999, export of
ferrosilicomanganese amounted to 85.5% as against the respective 1998’ figure, while
export of ferromanganese and ferrosilicon indicated 51.6% and 84.3% respectively.

The export pattern of ferroalloys has changed in comparison with the last
year and keeps on changing in the present year. According to the overall data, compared to
1998, the share of ferrosilicomanganese and ferrosilicon increased as high as 1.1 and 1.2
times respectively in the first half of 1999. However, the share of ferromanganese
decreased as low as 1.5 times (see table 1). At the same time, during the first half of
1999, the share of ferrosilicomanganese shrank by 4.6% and the share of ferrosilicon
enlarged by 4.7%.

Table 1. By-product structure of Ukrainian ferroalloys export in
1998-1999

The changes in the Ukraine’s export pattern foremost originate from the
ambiguous situation on the world ferroalloy market. On the one hand, weakened Euro
exchange rate resulted in the increased prices for ferrosilicon, while on the other hand,
there is certain stability in prices for ferrosilicomanganese. However, the latter factor
does not relate to the CIS market, where the bearish tendency prevails.

In the present year, Ukrainian ferroalloys were destined to practically all
the regions worldwide (see table 2). Nonetheless, distribution of Ukrainian ferroalloys by
the world regions is extremely irregular. The largest consignments of ferroalloys were
shipped to the CIS countries (a 39.1%), Asia (a 29.6%), Eastern Europe (a 14.7%), and
North America (a 8.0%). Other regions consumed substantially lower volumes: Africa – a
3.0%, the Baltic States – a 2.9%, and the EU – a 2.6%.

Table 2. Ukrainian export of ferrosilicomanganese, ferromanganese,
and ferrosilicon in 1998-1999

In January-June 1999, ferrosilicomanganese was mainly shipped to Asian
countries (a 38.2%) and the CIS (a 35.2%). The largest consumers were Russia (45.4 ths.
tons), Turkey (30.6 ths. tons), Japan (14.9 ths. tons), South Korea (8.3 ths. tons), the
USA (8.2 ths. tons), and Egypt (6.7 ths. tons). In the present year, no
ferrosilicomanganese supplies to Mexico, Iran, and the Republic of South Africa have been
registered yet.

The largest amount of ferromanganese (a 75.4%) was exported to the CIS
countries. Russia is the main consumer among these with about 24.1 ths. tons. Romania
(over 6.9 ths. tons), Kazakhstan (7.9 ths. tons), and Belarus (2.3 ths. tons) remain
stable consumers of Ukrainian ferromanganese. The first shipment of 2.2 ths. tons was
supplied to Canada. At the same time, compared to last year, no ferromanganese has been
destined to Turkey and Saudi Arabia yet.

It should be mentioned that Ukraine did advance export of ferrosilicon
compared to the beginnings of 1999. The main consumers of ferrosilicon are Eastern
European countries (a 39.4%), Asia (a 33.5%), and the CIS (a 14.8%). Besides, there is a
decrease in consumption of Ukrainian ferrosilicon by Asian and the CIS countries, whereas
supplies to Eastern Europe increased. Regular partners of Ukraine are Turkey (9.7 ths.
tons), Czech Republic (5.9 ths. tons), Slovakia (3.9 ths. tons), and Latvia (4.5 ths.
tons).

IMPORT

In the first half-year of 1999, 8,096.3 tons of ferroalloys to the tune of
about USD 5.5 mln. were imported to Ukraine. Major articles of Ukrainian imports were
ferrochrome (a 48.9% of the total imported ferroalloys) and ferromanganese (a 26.9%).

Main ferrochrome suppliers are Russia (3,290.8 tons) and Kazakhstan (264.5
tons). Ferromolybdenum was primarily imported from China (161.3 tons). Ferrovanadium
suppliers comprise five countries: Russia (219.9 tons), Austria, Belgium, China, and
Romania. Ferroniobium import originated from Russia and Brazil.

CONCLUSIONS & OUTLOOKS

As of the beginning of June 1999, the situation on the Ukrainian ferroalloy
market was complicated enough, thus, adequately reflecting versatility of the global
market. The average monthly production accounted for 79.0 ths. tons against 74.4 ths. tons
in 1998. The average monthly export of ferroalloys amounted to approximately 75% of the
last year’s turnover. The average monthly import of ferroalloys equals some 1.3 ths.
tons.

With such figures, the 1999’ ferroalloy export is estimated at 480-500
ths. tons, which is 74-77% of the 1998’ turnover. In terms of money, 1999’ export is
to account for USD 185 mln. or about 60% of the last year’s earnings.

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