shutterstock shutterstock
GMK human resources

The sector will support the Ukrainian economy in 2024 thanks to the effective operations of the “sea corridor”

The iron and steel sector of Ukraine was one of the most suffered from the Russian invasion of Ukraine, stated in the study of GMK Center “Economic impact of iron and steel sector of Ukraine 2023”. It’s an annual study of the contribution of iron and steel sector to socio-economic development of Ukraine.

Number of steelmaking plants in Ukraine reduced to only six from twelve in 2013, as the large part of steelmaking facilities were damaged or located on occupied territories. Nominal crude steelmaking capacities in Ukraine dropped from 42 mln tons in 2013 to 17.8 mln tons in 2023, according to the study.

Output of iron and steel in Ukraine in 2023 was 71% lower compared to 2021. But nevertheless, the iron and steel sector remains basic for the Ukrainian economy, contributed 5.7% to the GDP in 2023, incl. supply chains. Pre-war, the contribution of the iron & steel industry to Ukraine’s GDP was 10.3%.

“We could expect that in 2024, the iron and steel sector to support the Ukrainian economy as Black Sea ports reopen.The iron & steel sector will remain key to the economy in the future, as it forms the basis for post-war recovery and the green transition”, stated in the study.

Iron and steel sector of Ukraine provided every third dollar of goods exported from Ukraine pre-war. In 2023 it contributed 14.6% to export value.

Pre-war iron and steel sector of Ukraine was an important part of the global steel supply chain, ranking 2nd among the largest suppliers of pig iron, 3rd in the supply of semi-finished steel products, and 4th in the seaborne supply of iron ore. Ukraine will gradually restore its leadership positions, that will be facilitated by the opening of the “sea corridor”, and then by the end of the war.