The steel trading market in Ukraine is one of the barometers of the state of the economy during the war. Although the market is showing growth, this is happening in very difficult external conditions and amid growing competition.
In an interview with GMK Center, Roman Anzin, CEO of Vartis, spoke about the real state of the rolled steel market in 2025, challenges with logistics, the shortage of personnel, and the company’s strategy for the country’s recovery.
Demand for rolled steel has increased slightly compared to 2024, but still hasn’t reached pre-war levels. With demand being limited, competition is getting tougher. There’s price competition, sometimes with signs of dumping, as big companies fight to keep their market share and cash flow.
The main players in the market have remained unchanged compared to the pre-war period. Large companies with extensive networks are able to hold on even with minimal income and maintain their positions. The number of small players always fluctuates. The current situation in the rolled steel market is difficult, so not all small companies survive.
The market supply is balanced. Domestic producers cover most of the product range. In 2025, imports mainly concerned steel products that are not produced in Ukraine or are of higher quality, which is necessary for mechanical engineering. The quality of the steel they consume for further processing in production is important to them.
Difficulties remain in the areas of logistics and port infrastructure due to the war. Access to import markets is maintained, and it is possible to meet consumer needs.
Among the problems facing the market, I can mention that a significant portion of government contracts provide for deferred payments, usually for 30 days. This creates a serious burden on the working capital of suppliers and producers, who are effectively lending to the state.
Businesses operate at minimum profitability, which only allows them to cover basic operating costs and pay their staff. Under such conditions, the need to finance deferred payments requires the use of credit resources.
The situation is complicated by the fact that the banking sector is highly profitable, while businesses have limited access to affordable credit. The cost of credit resources remains high, which further reduces the already minimal profitability of operations.
Suppliers are trying to meet their customers halfway, but it is impossible to fully satisfy all needs due to financial constraints and the high cost of raising capital. The issue of financing deferred government payments remains without a systematic solution.
The main trends of 2024 continued in 2025. There was a shift in demand from private consumers to the public sector and large infrastructure projects.
The main consumers are the state, the military sector, large infrastructure and energy projects, and infrastructure reconstruction. There has been no revival in the private and residential construction sector yet.
Western Ukraine is gradually picking up pace, but market capacity is limited. In the central and eastern regions, demand has remained low since the start of the war.
– The market is gradually recovering after the start of the war. Consumption volumes are stable and gradually growing, although this growth is modest. Demand exists, and business continues to operate, albeit in difficult conditions.
Our company’s sales volumes in 2025 showed a 10-15% increase in tons compared to the previous year. In monetary terms, the growth is greater, which is explained by the impact of inflationary factors.
Sales of steel products last year were still about 7% below pre-war levels. It has not yet been possible to reach the 2021 level due to limited consumption.
– The main focus is on the production of wire and nails. This area operated at maximum capacity – almost 2,000 tons per month. The second area – reinforcement mesh – grew by about 20% due to increased demand. We export approximately 80% of our hardware products.
The priority now is to improve product quality, as it is in demand on the European market. There are certain restrictions on the part of European consumers in the form of quality and certification requirements.
– There was no significant increase or decrease in prices during 2025. In 2024–2025, the price situation was very stable. Prices on the Ukrainian market are directly proportional to import parity. There were no significant fluctuations in prices for rolled steel and billets on the international market.
The company is actively working with all segments: flat, long, and shaped rolled steel products, as well as pipe products. There has been an increase in collection in all these areas, which is due to the need to meet the urgent needs of customers.
A significant number of customers require immediate delivery without long waiting times. Due to the inability to predict the future and limited financial opportunities for advance payments, customers seek to receive goods as quickly as possible. This makes the availability of goods in warehouses a critically important competitive factor. We have increased the availability of steel in warehouses and improved accessibility at all steel bases.
The need to maintain significant inventories in warehouses has a significant impact on the company’s financial performance and increases the need for working capital. This creates additional financial pressure on the business in an environment of limited profitability and high borrowing costs.
The overall structure of market demand has not changed significantly since the start of the war and remains stable compared to 2024.
The share of consumption by infrastructure, energy, and military projects has been steadily growing since 2022–2023. This is due to the restoration of damaged infrastructure, the expansion of defense projects, and the creation of protection for energy facilities. Steel structures are actively used to restore warehouses of companies in various industries, which often become targets of rocket attacks.
The main challenges remain restrictions on rail transport, difficulties with port logistics, and power shortages. The company is investing in its own generators to ensure uninterrupted operation.
Internal logistics are facing significant constraints. There is a decrease in the supply of logistics services due to a shortage of drivers and vehicles. This puts pressure on pricing and causes significant fluctuations in the cost of services.
Shelling in certain regions of Ukraine directly affects the ability to transport goods. There are difficulties with delivering goods to eastern regions and transporting products from production facilities in high-risk areas. Logistics companies often refuse to work in these areas, which makes it difficult to ensure continuity of supply.
To increase flexibility and responsiveness to customer needs, companies are forced to use their own transport. Engaging external carriers remains problematic due to the unstable situation and limited willingness to provide services in risk areas.
We have established relationships with foreign prodicers in China, Turkey, and Europe, experience in logistics in difficult conditions, and access to specific steel products. In particular, we import special steels, including armored grades for military needs.
The issue is time and the need to make advance payments. Foreign producers work to order (not from stock), which requires one to two months for production.
It should be noted that at the end of January, an anti-dumping investigation was launched into steel welded pipes from Turkey. There are concerns that the NKMT may not take into account all aspects of the situation, in particular the fact that not all goods can be produced in Ukraine with the required quality. This could lead to market imbalances and negative consequences.
Indeed, the labor shortage is a complex problem. We are faced with a need for both skilled specialists and unskilled labor (loaders, slingers). The level of unfilled vacancies is approximately 30% of the total staffing needs.
In such conditions, we hire people of retirement age and demobilized military personnel. The company understands the importance of creating jobs for veterans and tries to adapt working conditions. Working with rolled steel is difficult, and it is not always possible to provide appropriate conditions.
We have even considered inviting foreign workers, but there are obstacles: high-risk work requires training and special permits. People who do not know the language cannot undergo training.
The demand for steel for post-war reconstruction will be significant, but there are limitations on GDP growth. Even with sufficient funding, maximum post-war GDP growth is estimated at 20–30%. Economic growth is determined by infrastructure and industrial projects, as well as the availability of labor, which will be in short supply.
The projected growth in steel consumption is a maximum of 20-30% per year. In 2025, consumption was estimated at approximately 4 million tons. Annual growth could be approximately 0.8–1 million tons per year after the end of the war.
– The company’s main plans focus on improving service and meeting customer needs:
The company continues to invest in the development of steel center infrastructure to meet customer needs in the post-war period. This includes warehouse space, logistics infrastructure, local staffing, and the ability to meet growing demand.
The company’s strategy is to be prepared for challenges, including growing customer needs, market expansion, labor shortages, military risks, and power shortages. The task is to cope with these challenges and think one step ahead.
– If military operations continue, the market is expected to grow by no more than 10% annually. Demand will remain the same as in 2025, with no significant changes in consumption. The main industries that will generate consumption are:
If the war ends, market growth can be expected. The most optimistic scenario predicts an increase of 20–30%.
Last year, German steelworks reduced their scrap consumption by 5% year-on-year due to a decline…
The CBAM and the EU’s new safeguard quota system are hitting Ukraine’s steel industry from…
SteelWatch, an international nonprofit organization promoting the decarbonization of the steel industry, recently released the…
Despite the challenges posed by the war, the steel structures market in Ukraine is showing…
The iron and steel industry of Ukraine is going through one of the most difficult…
The Ukrainian government's decision to introduce a “zero” quota on ferrous scrap exports by the…