Anna Gontarenko: «The workload of steel structure producers is now 40-60%»

The Ukrainian steel construction market continues to recover. Although its volume is still 40% lower than before the war, the growth dynamics is quite high and coincides with the increase in the volume of the construction market in Ukraine. In an interview with GMK Center, Anna Gontarenko, Executive Director of the Ukrainian Steel Construction Center Association, spoke about the performance and situation on the Ukrainian steel construction market.

What were the results of the last year for the Ukrainian steel structure market in terms of production?

– In 2024, consumption of steel structures in Ukraine increased by 15% compared to 2023 and amounted to 91 thousand tons. This is more than 40% less than in pre-war 2021, when the Ukrainian steel structures market amounted to 154 thousand tons.

Last year, 50 steel structure producers operated in the Ukrainian construction market, including 10% with a production volume of more than 5 thousand tons, 20% with a production volume of 2-5 thousand tons, and 70% with a volume of up to 2 thousand tons. The latter group of producers decreased by seven companies compared to 2021. During the full-scale invasion, the Avdiivka Steel Structures Plant was forced to cease operations.

Most steel structure producers today have production utilization rates of 40-60%.

Can you name the main factors that are currently driving demand for steel structures?

– The growth in steel structure consumption in 2024 is due to an increase in imports during the year, as well as an increase in the implementation of infrastructure projects.

The revival in demand for steel structures in logistics, agriculture, and commercial construction was the result of increased private investment and business adaptation to new conditions.

What is happening with steel prices now?

– Over the past year, the cost of steel structures in UAH increased by an average of 11% compared to 2023, primarily due to an increase in the cost of processing, and today amounts to UAH 77-83 thousand per ton.

At the end of 2024, the average prices of rolled steel used for the producers of steel structures decreased by 12% compared to the beginning of the year and by 20% compared to the second quarter of 2023, when prices for rolled steel reached their highest levels in the last two years.

The full-scale war has created numerous problems for Ukrainian businesses. What are the current challenges in the steel structures and steel construction market?

– Despite the positive trends, the steel structures market is facing a number of challenges: electricity shortages at enterprises as a result of massive attacks on Ukraine’s energy facilities, a shortage of skilled workers due to increased mobilization and outflow of labor, and logistical difficulties.

Since the start of the war, Ukrainian steelmakers have significantly reduced or even stopped production of certain types of steel products. Are steel structure producers forced to buy imported steel?

– Ukrainian steel producers are forced to buy certain rolled steel products, especially after the loss of Azovstal and Ilyich Iron and Steel Works of Mariupol, which had been supplying the domestic market before the full-scale war. The structure of rolled steel consumption by steel structure producers is as follows: 54% of flat products, 25% of pipes (round and shaped), and 20% of structural shapes (beams, channels, angles).

Today, Ukrainian steelmakers supply steel structure producers with rolled plates up to and including 8 mm, as well as certain shapes and pipes.

To meet the needs of market participants, the Ukrainian Steel Construction Center maintains a service of up-to-date warehouse assortment, which helps market participants navigate the available steel grades and assortment items to avoid problems when completing an order or re-approving design solutions.