Iron & steel industry contribution to Ukraine’s GDP increased to 7.2% in 2024

Despite the war, the mining and metals sector remains a key sector of Ukraine’s economy. The contribution of the mining and metals sector, including supply chains, to Ukraine’s GDP increased to 7.2% in 2024 (5.7% in 2023).

This is stated in the GMK Center’s study “Contribution of iron & steel industry to the Ukrainian economy in 2024”.

In 2024, the share of the mining and metals sector in the economy increased due to growth in steel production (+21.5%) and iron ore production (+55.2%). Stable operation of the sea corridor enabled exports from Ukraine’s Black Sea ports, which determined the positive dynamics of output in the steel industry. According to the Ministry of Economy, Ukraine’s economy grew by only 3.6% in 2024.

Ukraine’s mining and metals industry is gradually regaining its position as a global player following the resumption of exports from Black Sea ports. In 2024, Ukraine ranked 3rd in the world among the largest pig iron exporters. Ukraine also returned to the top 5 largest exporters of iron ore.

Ukraine’s steel sector is part of the European metallurgy, as it is included in European supply chains. The EU’s share of Ukraine’s steel exports amounted to 64% in 2024.

The iron and steel sector accounted for 18.3% of total capital investments in the Ukrainian industry in 2024. The amount of capital investments by metallurgical companies in 2024 was 8.3% higher than in 2023.

The ongoing war in Ukraine is hampering the recovery of investment activity. Most companies have frozen large investment projects related to production development. But they will resume as soon as the war is over and the steel sector becomes a driver of industrial development.

During the war, steel companies continue to support the state budget’s ability to finance defense and social needs. In 2024, the largest steel companies in the industry (Metinvest, ArcelorMittal Kryvyi Rih, Interpipe, DCH Steel, Ferrexpo) paid a total of $0.9 billion in tax payments. The successful operation of metallurgical enterprises is critically important for regional and local budgets in terms of tax revenues.

In 2025, GMK Center forecasts a decline in steel production due to significant challenges in global markets and in the country.