Demand for Georgian ferroalloys has increased amid disruptions to global supply routes caused by the ongoing conflict involving Iran.
Ilia Gogsadze, CEO of ‘AMB Alloys’, said in the BM.GE programme that the closure of the Strait of Hormuz has extended delivery times and raised transportation costs for global producers, increasing demand for Georgian ferroalloys, particularly in the Turkish market.
Exports from the company to Turkey have risen by around 10–15%, he noted.
“The crisis in the Middle East is affecting the ferroalloys market,” Gogsadze said. “Traditional routes used to transport cargo from East to West are disrupted, forcing shipments to bypass Africa. This increases both time and costs, which in turn supports demand for Georgian ferroalloys.”
He added that the increased demand has led to a slight upward trend in prices, with expectations of further growth if current conditions persist.
“Within our production capacity, we are trying to meet the increased demand. Our share of exports to Turkey has grown by approximately 10–15%,” Gogsadze said.
However, the CEO noted that rising electricity tariffs since April remain a major challenge for the sector.
“This positive dynamic has been offset by higher electricity costs,” he said. “The sector is in a very difficult situation. Before the crisis, 5–6 ferroalloy enterprises operated in Rustavi. Today, only one remains active.”
