Ukraine’s monthly steel exports have declined 77% since the start of the Russian incursion, according to Ukrainian-based consulting company GMK Center. Ukraine exported 1.27 MMT of ferrous metal monthly in January and February, compared with 294,000 tonnes between March and August, the iron and steel research and consulting firm said. Seaborne steel exports were disrupted due the blocking of Black Sea ports, said GMK Center chief executive Stanislav Zinchenko. There is some chatter circulating on the grapevine about expanding the scope of grain corridor to include iron and steel products. “Unfortunately, the topic of the corridor for steel and iron ore in seaports is not formally discussed. That will be totally worth it,” he told Lloyd’s List. In the meantime, the capacity of railway crossings between Ukraine and the European Union is very low, with only 2,000 wagons per day due to the difference in the railway track, he said.

Ukraine is a keystone in the world’s iron and steel production. It was once the world’s fourth-largest exporter of iron ore, second-largest exporter of pig iron, third-largest exporter of semi-finished steel and eighth-largest exporter of long steel used for construction. Prior to the Russian incursion, 97% of pig iron exports and 76% of finished steel exports from Ukraine, were transported via ships, with the remainder by rail. The country has racked up a 53% drop in its iron ore and manganese ore exports compared with the situation before the current backdrop. Ukraine exported 1.8 MMT of iron ore and manganese ore monthly between March to August, compared with 3.8 MMT in January and February. Without the export of ore and steel products, the Ukrainian economy will be greatly weakened, said Mr Zivchenko. He called for the unblocking of Black Sea ports and the expansion of the capacity of the railway on the border with the EU to allow Ukrainian steel exports to resume. At present, the three largest iron ore mines in the country remain closed. The rest operate at 30%-50% capacity, he said.