The Ukrainian Association of Ferroalloy Producers (UkrFA) believes that the new Ukrzaliznytsia transportation tariffs could result in the shut down of some of the plants.
In particular, the tariff for Nikopol Ferroalloy Plant will increase by 8.4 million UAH per month (with VAT), or by more than 100 million UAH per year. The increase of the tariff for railroad transportation of imported manganese raw materials will be 25%, of local manganese raw materials – 11.5%, and of slag – 14.5%.
Since the manganese raw materials are the main resource for NZF (annual consumption of 2.2 thousand tons), such changes will lead to the worsening of the economical situation at the enterprise and its position on the world market, and even to the shut down of the plant.
The increase of expenses of Zaporozhye Ferro Alloys Plant will be some 3.5 million UAH per month. (Ukrainian metal)