Industrial production in Ukraine for 2022 decreased by 36.9%

In 2022, the volume of industrial production in Ukraine decreased by 36.9% compared to 2021. In December, the indicator decreased by 44.1% compared to the same month of the previous year and by 3.7% m/m. This is evidenced by State Statistics Service’s data.

Over the past year, production in steel industry and the production of finished steel products decreased by 62.5% compared to 2021, and in iron ore mining – by 61.7%.

In December 2022, production in steel industry fell by 79.8% compared to December 2021 and by 24.4% compared to the previous month. In the extraction of iron ores the indicator decreased by 83% y/y and by 15.7% m/m.

The worst month in terms of the dynamics of industrial production last year was March, when it fell by 53.7% after the Russian invasion. At the same time, a 2.9% increase was recorded in January, and a 10.1% decrease – in February. In the future, the indicator gradually recovered.

In the third quarter of 2022, before the emergence of energy supply problems due to Russian shelling, the upward trend continued. Power outages negatively affected the industry of Ukraine, and continued to limit the work of enterprises until the end of the year.

The low volumes of production of Ukrainian steelmakers are connected with logistical problems, the unfavorable situation of the world market, as well as with the destruction due to hostilities of the two largest steel enterprises of Ukraine – Azovstal and Ilyich Iron and Steel Works in Mariupol.

After the Russian invasion of Ukraine at the end of February 2022, Europe became the only market for Ukrainian products. At the same time, it is difficult and expensive to deliver goods by rail. The costs of steelmakers for the shipment of rolled products to customers increased at least 2 times, and the demand for products fell due to unfavorable market conditions.

Due to the above-mentioned factors, Ukrainian iron and steel enterprises operate with a low level of capacity utilization and even temporarily stop some of them. In addition, from October 2022, the Russian Federation was shelling the state electricity infrastructure of Ukraine, which causes problems with energy supply of regions and industry.

Now the situation with energy supply has stabilized, and the world markets are gradually recovering, which allows to increase steel production capacity.

As GMK Center reported earlier, in 2021 industrial production in Ukraine increased by 1.1% compared to 2020. During the year, production in steel industry and the production of finished steel products increased by 5.2%, iron ore mining – by 2.5%.

  • Companies

Arvedi Group raises €900 million to expand production and decarbonize

Italian steel company Arvedi Group has raised €900 million in financing to implement a large-scale…

Friday June 27, 2025
  • Global Market

Domestic demand for steel in China continues to fall

Domestic demand for steel in China, according to market participants' estimates, continued to fall in…

Friday June 27, 2025
  • Industry

Construction works performed in Ukraine in January-April fell by 13% y/y

The index of construction work performed in Ukraine in January-April 2025 decreased by 13% compared…

Friday June 27, 2025
  • Global Market

Emissions in China’s steel industry sector rose by 17.9% y/y in May

In May 2025, Chinese steel enterprises belonging to the CISA industry association increased their total…

Friday June 27, 2025
  • Industry

The European Commission has adopted a new state aid system for clean industry

On June 25, the European Commission adopted a new state aid system to support the…

Friday June 27, 2025
  • Industry

Ukraine reduced iron ore exports by 13% y/y in January-May

Ukraine's mining industry reduced iron ore exports by 12.8% year-on-year in January-May 2025 compared to…

Friday June 27, 2025