Capital investments in the Ukrainian steel industry increased by 46% y/y in 2024

The volume of capital investments in the sector “Steel production, production of finished steel products, except for machinery and equipment” increased by 45.9% in 2024 compared to 2023, to UAH 14.51 billion. This is according to the State Statistics Service.

In the first quarter, investments in the production facilities of steel enterprises amounted to UAH 2.21 billion (+67.4% y/y), in the second quarter – UAH 2.85 billion (+47.7%), in the third quarter – UAH 3.4 billion (+21.2%), and in the fourth quarter – UAH 6.05 billion (+55.7% y/y). Thus, the fourth quarter accounted for the largest volume of investments for the year, exceeding the previous quarter’s figure by 77.8%.

During the year, capital investments in the Mining and quarrying sector amounted to UAH 59.39 billion, up 0.5% compared to 2023, in particular:

• Q1 – UAH 13.27 billion (+16.3% y/y);
• Q2 – UAH 14.09 billion (-1.7%);
• Q3 – UAH 13.26 billion (-19.8%);
• Q4 – UAH 18.8 billion (+11.7%).

The mining industry also saw a surge in investment at the end of the year. Compared to the previous quarter, the figure increased by 41.5%.

The total volume of capital investments in the Ukrainian industry in 2024 increased by 23.1% y/y – to UAH 209.14 billion. The iron & steel accounted for 35.3% or UAH 73.91 billion.

Despite all the difficulties of wartime, the Ukrainian iron & steel sector continues to invest heavily in maintaining and modernizing its facilities, being one of the largest investors in the country’s economy. The share of MMC’s capital investments in the total industrial investment amounted to almost 10% in 2023.

According to GMK Center, in 2023, the industry reduced capital investments by 7.2% y/y – to UAH 16.6 billion, while investments in 2022 were partially realized without taking into account the military operations in January-February. In particular, investments in steel industry increased by 3.3% y/y – to UAH 8.2 billion, but iron ore production decreased by 15.6% y/y – to UAH 8.4 billion.

Metinvest Group invested $284 million in production facilities in 2023. Of this amount, $65 million was invested in steel production and $213 million in mining. Iron ore company Ferrexpo invested $101 million and Interpipe $31 million (+48% y/y). ArcelorMittal Kryvyi Rih has invested UAH 9 billion ($217.4 million) in production over two and a half years of war. By the end of 2023, the company increased its capital investments by 15% – to $130 million.

In 2025, companies in the industry plan to increase investments in modernization and maintenance of production facilities.