Ukraine cannot produce and export 1.3 million tons of iron ore, 151,000 tons of pig iron, 192,000 tons of semi-finished metal products, and 218,000 tons of finished metal products every month.
Ukrainian seaports were closed at the beginning of the war because of the danger of mines and the military threat from the Russian Black Sea Fleet. Only Danube ports continue to handle export shipments of steel products in Ukraine, but these ports have relatively small capacities and cannot solve the existing logistical problems. This has resulted in up to USD 420 million in lost revenues from the export of Ukrainian steel products per month.
Ukrainian steel exporters have been forced to redirect their cargo flows to seaports in the European Union, particularly Romania (Constanța), Bulgaria (Burgas), Poland (Gdynia, Gdańsk, Szczecin, and Świnoujście), Croatia (Rijeka and Ploče), and Germany (Hamburg, Bremerhaven, and Bremen). As a result, Ukrainian exporters’ average distance to the port of departure has increased fivefold and their cost of delivery to the port of destination has increased by an average of 3-4 times.
Ukraine cannot produce and export 1.3 million tons of iron ore, 151,000 tons of pig iron, 192,000 tons of semi-finished products, and 218,000 tons of finished metal products every month.
Railway wagons are waiting in line at Ukraine's borders with the European Union because seaports in the European Union do not have the free capacity to handle all Ukrainian cargo.
Even during the war, 60% of the steel products from Ukraine are delivered to customers by sea. Therefore, a production increase, increased capacity utilization of Ukrainian steel plants, a restart of idle production facilities, and an export increase are possible only if Ukraine’s Black Sea ports are unblockaded.