2.5.7. FERROALLOYS

Performance over 2000 evidences that not only Ukrainian ferroalloys retained their positions on the world market, but they also managed to improve their foothold. Due to this, performance of Ukrainian producers and traders in ferroalloys may be evaluated as success. As compared to 1999, production, exports, and domestic consumption of ferroalloys grew approximately 1.4 times. Simultaneously, imports of ferroalloys by Ukrainian consumers increased 2.5 times. Positive trend in global economy, particularly, in steel production, contributed to prosperous trade in Ukrainian ferroalloys in 2000.

According to the data with UkrFA, ferroalloy mills of Ukraine, namely, Nikopol, Zaporozhye, and Stakhanov mills, as well as Kramatorsk Metallurgical Works, manufactured some 1.5 mln. tons of the product in 2000, which accounts for some 138% of the 1999 output. As compared to 1999, ratio of ferroalloy contributions by their producers was subject to certain changes. Thus, Nikopol Ferroalloy Works expanded its portion by some 6.6%, whereas Zaporozhye Ferroalloy Works slashed its portion by 7.3%.

Positive performance of Ukrainian ferroalloy producers in 2000 was driven not only by external factors, but also by wise approach to solving of domestic problems. This especially concerns reliable power supply regardless season. Creation of vertically integrated holdings, which will unite producers of ferroalloys and electrical power, is the most likely prospective.

Favorable conjuncture on the ferroalloy market in 2000 fostered Ukraine’s physical exports of ferroalloys to grow some 1.4 times as compared to 1999 (see figure 1).

Fig.1. Export dynamics of Ukrainian ferroalloys in 1999-2000

As a whole, in 1999-2000 Ukrainian exports of ferroalloys featured positive trend; thus, exceeding 0.8 mln. tons in 2000 worth some USD 345 mln.

As compared to 1999, the structure of ferroalloy exports from Ukraine in 2000 saw no considerable changes. At this, the aggregate share of manganese ferroalloys stood virtually unchanged (78.5-78.6%), whereas the share of ferromanganese added 3.0% as opposed to ferrosilicomanganese that dropped by 2.9%. Accretion of the share of low-tonnage ferroalloys from 1.3% up to 1.7% serves as a positive trend, which evidences recovery of Ukrainian producers of the commodity.

Geographical pattern of Ukraine-made ferroalloy supplies was quite broad in 2000 featuring 34 countries of 4 mainlands, except for countries of South America, Australia, and Oceania. Yet, the year 1999 turned out to be more successful in terms of purchasing countries, with 42 countries having bought ferroalloys from Ukraine. At the same time, average supplies per country in 2000 exceed the 1999 figure 1.7 times. This suggests growth of supply concentration, as well as improvement of Ukraine’s positions, on the global market for ferroalloys.

Export distribution of Ukrainian ferroalloys by regions reveals that major consumers of the commodity are the CIS countries accounting for 47% in total export turnover, Asian countries yielding a 27% share, as well as countries of Eastern Europe with 13%.

In 2000, the range of low-tonnage ferroalloys supplied by Ukraine to 13 countries worldwide kept traditional including ferronickel, ferromolybdenum, ferrotungsten, ferrotitanium, ferrovanadium, and ferroniobium.

Increase of steel production in Ukraine called forth growing consumption of ferroalloys, which are not produced in Ukraine. As a result, in 2000, Ukrainian imports from 20 countries of Europe and Asia totaled some 38 ths. tons yielding some USD 40 mln. of currency earnings.