Consumption of rolled steel in Ukraine increased by 23% y/y in Q1

Apparent consumption of rolled steel in Ukraine increased by 23% in January-March 2025 compared to the same period in 2024. This was discussed at the Metal Expert conference “Ferrous Metallurgy of Ukraine 2025”.

The largest growth was observed in the flat hot-rolled thin sheet segment, up 60% compared to the first quarter of 2024, to 243 thousand tons. Domestic consumption of rebar amounted to 168 kt in the period, up 45% y/y, wire rod – 107 kt, and coated products – 148 kt.

Domestic consumption of rebar, flat and thin plates, and coated products has seen a significant recovery over the past two years. At the same time, demand for wire rod remained almost unchanged.

The key driver of the recovery in demand for steel products is the intensification of construction work. In particular, in 2024, the volume of construction work in Ukraine increased by 15.5% y/y – to UAH 204.7 billion. The largest volumes were accounted for by engineering structures – UAH 120.4 billion (+12.5% y/y). Non-residential construction increased by 26.2% y/y – to UAH 57.7 billion, and residential construction by 7.6% y/y – to UAH 26.6 billion.

According to Serhiy Kovalenko, Commercial Director of Vartis, defense projects have been a key driver of steel consumption growth in Ukraine over the past two years and will remain so in 2025.