ArcelorMittal Kryvyi Rih will be forced to shut down its Blooming shop in Q2

The key factor was the final introduction of CBAM without exceptions for Ukraine

ArcelorMittal Kryvyi Rih PJSC is forced to shut down the Blooming shop of its rolling department in the second quarter of 2026. This is stated in the company’s announcement.

«This decision is not easy, but objective due to the current economic and market circumstances in which the company operates in conditions of full-scale war,» the company said.

As noted, the key factor was the European Commission’s decision to introduce a cross-border carbon adjustment mechanism (CBAM) from January 1, 2026, without any exceptions or transition period for Ukrainian producers.

«In fact, this means the loss of the European market for a significant part of Ukrainian metallurgical products, which critically affects the production volumes and workload of individual units and facilities,» AMKR noted.

As noted, after the start of the full-scale invasion, ArcelorMittal Kryvyi Rih made significant efforts to reorient its sales to the EU market, effectively building it from scratch in extremely difficult conditions. However, the introduction of CBAM without taking into account the military realities in Ukraine has nullified these efforts.

«In the absence of a stable European market, the company does not have sufficient order volumes to ensure the operation of Blooming shop both today and in the medium term,» the company states.

ArcelorMittal Kryvyi Rih cites the extremely high cost of electricity in Ukraine as an additional significant factor. The cost of production has increased significantly amid constant attacks on energy infrastructure, electricity shortages, and the need to import electricity at high prices, further undermining the economic viability of the Blooming shop.

Since the start of the war, the cost of electricity for industrial producers has more than doubled. Compared to 2024, when the company asked the government to urgently develop measures to curb electricity price increases and support the mining and metallurgical complex, the price of electricity rose from $135 per MWh to $210 in January 2026. This makes production, particularly in the blooming shop, economically unviable.

At the same time, all Blooming shop employees will receive job offers in other departments within the company with the possibility of retraining at the company’s expense. They will retain all the benefits of working at ArcelorMittal Kryvyi Rih, including a stable salary, social package, and all other benefits. All other procedures and guarantees provided for by the current legislation of Ukraine will also be applied.

As Mauro Longobardo, CEO of ArcelorMittal Kryvyi Rih, previously noted, without a transition period under CBAM, Ukraine will lose the core of its steel industry. Without a deferral of the carbon tax by the European Commission, Ukraine will lose billions in exports.