In 2024, Ukrainian ferroalloy enterprises faced a significant decline in production. According to the Ukrainian Association of Ferroalloy and Electrometallurgical Products Producers (*UkrFA*), the volume of output amounted to 108.2 thousand tons, which is 49.4% less than in 2023.

The industry was able to resume work only in April-May 2024 after a forced suspension of operations in the fall of 2023. However, even after the restart, production did not reach previous volumes, which is explained by both internal economic difficulties and external factors.

The largest reduction occurred in the production of main types of products. The output of silico-manganese decreased by 45% - to 104.2 thousand tons. tons, and ferromanganese production fell even more significantly - by 66.5%, to 3.6 thousand tons. The output of ferrosilicon (recalculated by 45%) amounted to only 0.12 thousand tons, and other ferroalloys - 0.28 thousand tons. The production of metallic manganese and manganese concentrate was not carried out at all.

The enterprises of the industry are facing serious problems that are hampering their activities. The key factors that influenced the decline include:
- The location of plants in regions where hostilities are ongoing, which carries risks for personnel and equipment.
- The high cost of electricity, which is the main component of production costs. The situation is complicated by the need for prepayment, which leads to a shortage of working capital.
- Lack of labor due to mobilization and departure of workers to safer regions.
- Logistical difficulties, in particular high transportation costs due to the congestion of the ports of "Great Odessa" and the Danube.

The decline in production also directly affected exports. In 2024, Ukraine sent only 77.3 thousand tons of ferroalloys abroad - 4.5 times less than in 2023 (344.2 thousand tons). The main sales markets remain Poland, Turkey and Italy. At the same time, Ukrainian producers are gradually losing ground on the Italian market, as they face competition from Kazakhstan, where energy costs are lower.

Another challenge for Ukrainian ferroalloy enterprises may be the possible introduction of trade restrictions by the EU. Currently, Ukraine enjoys a preferential export regime to the European Union, but quotas or other restrictions may be introduced after June of this year. In addition, the European Commission has launched an investigation into the import of ferroalloys, which is likely due to increased supplies from Kazakhstan. This creates additional risks for Ukrainian producers, who are already operating in a difficult economic situation.