Several small and medium-sized ferroalloy producers in Georgia have suspended operations as low international prices and rising electricity costs make production unprofitable, according to industry representatives.
Ilia Gogsadze, Executive Director of AMB Alloys, said ferroalloy prices have increased by around $100-$150 per ton since January 2026, largely due to supply chain disruptions linked to conflicts in the Middle East. However, the increase has not been sufficient to offset higher production costs.
The sector's main challenge remains electricity tariffs. Gogsadze noted that a regulatory decision that took effect on April 1 increased the distribution tariff for companies connected to the 10-kwh network by 7.48 tetri, while producers were also unable to secure access to lower-cost hydropower resources traditionally available during the spring and summer months.
As a result, AMB Alloys halted production at its Rustavi plant at the end of May, while other smaller producers face similar difficulties. Gogsadze said some companies that had planned to restart operations have postponed those plans indefinitely, warning that the sector remains in crisis and requires greater support from relevant state agencies.
