Ukraine loses $420 million every month due to blocked steel exports
1.12.2022 - 13:30
In Ukraine, only the Danube ports continue to operate for the shipment of metallurgical products.
Every month, Ukraine loses 420 million dollars because it cannot produce and export during this period 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. Currently, only the Danube ports continue to work for the shipment of metallurgical products, writes HMC Center.
Read also: Export of metals through ports- is there a chance?
At the same time, due to the small capacity of the Danube ports, it is impossible to solve the existing logistical problems. Ukrainian exporters from the metallurgical industry were forced to redirect cargo flows to EU seaports, in particular to Romania (Constanța), Bulgaria (Burgas), Poland (Gdynia, Gdańsk, Szczecin, Swinoujscie), Croatia (Rijeka, Ploče), Germany (Hamburg, Bremerhaven, Bremen). Because of this, the average distance to the port of departure increased fivefold, and the cost of delivery to the port of destination increased by an average of three to four times.
In turn, EU seaports do not have free capacity to handle all Ukrainian cargo, so railway wagons stand in queues at Ukraine’s borders with the EU. Even now, 60% of metallurgical products from Ukraine are delivered to final consumers by sea transport.
