The Ukrainian Association of Ferroalloys and Electrometallurgy Manufacturers (UkrFA) reported that it has officially appealed to the Ukrainian government, warning of the critical situation in the country's electrometallurgy sector and calling for the pilot implementation of state support mechanisms. UkrFA reports that businesses across the sector are facing serious operational challenges.
Strategic industry under increasing pressure
UkrFA stressed that the ferroalloy and electrometallurgical industry is a strategically important part of Ukraine's full-cycle industrial economy and plays a vital role in post-war infrastructure and industrial reconstruction.
However, the association said that extremely high energy costs put the sector at risk, especially for companies operating in frontline regions, whose specific operating conditions are not sufficiently reflected in current government policies.
The association clarified that the share of energy costs in the cost of production of electrometallurgical enterprises was 34 percent in 2023, 38 percent in 2024 and almost 40 percent in the past year.
The situation worsened further after the decision of the energy regulator of Ukraine to introduce a price limit of 15,000 hryvnia per MWh. UkrFA warned that this measure creates a real risk of a complete shutdown of ferroalloy and electrometallurgical production in Ukraine.
Call for pilot measures of state support
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