Armenian exports of FeMo to Ukraine, said I. Dzvinka, have tended to decline in 2009 – 2010, and the competition will likely increase in 2012 with an unfavorable steel market conditions.

According to the data of the State Statistical Servie of Ukraine, quoted by the analyst, in 2009 Armenian ferromolybdnum exports to Ukraine totaled 743,5 metric tons (worth $17,2 mln) in 2010– only 203,0 tons ($5,4 mln), and in the first 9 months of 2011 г. – 120 tons ($3,0 mln). 

Armenia has been loosing its market share as well. In 2009, 2010, and Jan – Sep of 2011, the share of Armenian FeMo exports in quantitative terms equaled accordingly 30%, 14%, and 7%. In total worth, the setback has been almost the same (31%, 14%, 7%).

The free space was immediately took over by distant countries. In 2009 – 9m2011, the share of South Korean exports has advanced from 1,6% to 22% in total export value, China has moved up  from 3,3% to 13,9%. The US have not exported to Ukraine in 2009, but in the first 3 quarters of 2011 have earned an 18,3% share. Armenian production, which only has to cross Georgia and the Black sea, was left behind by much farther destinations.

The reason of the downfall remains vague, considering a noticeable freight advantage of Armenian FeMo. It may have been partially translated into an advantage in price. On the average, told the analyst of Eavex Capital, the price of Armenian ferromolybdenum in Jan – Sep 2011 has been $25.4 thousand per metric ton, while the average prices for its competitors from China, Korea and the US have equaled $27,2, $28,6 and $30,0 thousand/ton accordingly. «The reason may be the quality of the production or else, the contractual activity between the importers and the consumers», told the Ukrainian expert. 

According to him, a contraction of consumption of ferro-alloys in Ukraine in 2012 is not in sight. “With a slight growth in steel production in Ukraine in 2012 for 1 – 2% to 34,7 mln tons, we do not expect a reduction in consumption of ferro-alloys, including ferromolybdenum”, he told.

P.S. The next week, starting the following Wednesday, is going to be on copper. Export opportunities of Armenian ferromolybdenum will stay on the agenda even outside the «week» format.