Exclusive Iron and steel sector contributed 5.5% to the GDP of Ukraine in 2025

The industry has lost positions in many export markets, while becoming increasingly dependent on shipments to the EU

Ukraine’s iron & steel sector has been among the hardest hit by the war, nevertheless, it remains a cornerstone of the national economy, contributing 5.5% to GDP in 2025.

It’s stated in the GMK Center study “Economic impact of iron & steel industry of Ukraine 2025”.

The share of the iron & steel industry decreased from 7.2% in 2024 due to reduced output of steel (-2.2%) and iron ore (-3.3%), as well as the shutdown of coking coal operations in Pokrovsk. The Pokrovske mine was Ukraine’s primary source of coking coal, accounting for 66% of domestic supply in 2024.

While major economies such as the U.S., the EU, the UK, China, and India support their steel industries through trade restrictions and various subsidies, Ukraine’s steel sector lacks comparable government support, leading to a loss of competitiveness in both export and domestic markets.

Last year, iron & steel exports reached $6.2 bln – the sector contributed 15.2% of total exports (15.4% in 2024). Ukraine’s iron and steel industry is increasingly integrated into the European steel industry, with this role strengthening last year. The EU’s share of Ukrainian steel exports rose from 66% in 2024 to 79% in 2025.

The EU became the main export destination as Ukrainian steel companies, facing a wide range of war-related challenges, cannot compete effectively in global markets. Chinese and Russian exports displaced Ukrainian steel from traditional markets in the MENA region, Türkiye, and other regions. In the domestic market the share of imports reached 40% in 2025.

As previously reported by GMK Center, total steel production in Ukraine over four years has fallen by 65% compared to pre-war levels, with output dropping to 7 mln tons per year from 21 mln tons in 2021. Companies in the industry are forced to reduce utilization of their production capacities because of high costs of CBAM and expensive electricity, which make Ukrainian products uncompetitive in export markets.