The ongoing conflict in the Middle East and the temporary disruption of shipping routes near the Hormuz Strait have created logistical challenges for India, one of the world’s largest suppliers of ferroalloys. As a result, industry experts expect global prices to rise and demand for alternative suppliers to grow. Georgia, with its established ferroalloy production sector, is well positioned to benefit from this shift.
According to Merab Lominadze, head of the Association of Qualified Electricity Consumers, Turkish buyers - who traditionally rely on Indian imports, are already seeking new sources to secure stable supplies. Georgia has quickly become their preferred option due to its short logistical route and long-standing presence in the Turkish market. Increased export activity toward Europe is also anticipated as buyers diversify away from supply risks.
Beyond its traditional markets, Georgia may also gain access to new regions where Indian products can no longer arrive on time, including parts of North Africa and the Middle East. These opportunities could temporarily expand Georgia’s export reach and strengthen its role in global ferroalloy supply chains.
While price increases have not yet materialized, Lominadze expects them to follow as demand continues to rise. This trend could bring positive macroeconomic effects for Georgia and support sectors closely linked to metallurgy, such as energy and logistics.
