Steel consumption in Ukraine to grow by 20% in 2023

Consumption of rolled metal products in Ukraine increased by more than 20% in 2023 compared to 2022. The growth is primarily due to the activation of government projects. This was stated by Sergiy Kovalenko, Commercial Director of the metal trading company Vartis.

«This growth is primarily due to the activation of government projects. Such as infrastructure reconstruction, restoration of bridges and bridge crossings, and construction of energy shelters. There are also projects such as the underground school in Kharkiv, which is one example of large government orders that lead to an increase in rolled steel consumption. Thanks to government projects, steel consumption has increased significantly, but this would not have happened without external financial assistance from partner countries. If Ukraine continues to receive financial support, the consumption growth trend will continue,» he said.

The main trend in rolled steel consumption in 2023 was the intensification of construction and reconstruction of infrastructure, energy shelters and an increase in the volume of reconstruction of destroyed housing. Another trend of the past year was a significant increase in imports to Ukraine, especially of rolled steel sheets.

In addition, 2023 was marked by a significant drop in rolled steel prices in March and November. This trend reflects the global recession, which has led to a drop in demand for products and a reduction in steel consumption and production. In November, the global market improved as demand in China picked up, pushing prices higher. In 2024, Vartis expects rolled steel prices to rise gradually throughout the period.

Currently, the growth of the Ukrainian rolled steel market is heavily dependent on the volume of government orders. The share of private orders in sales growth for 2023 is estimated at 10%.

«Due to the martial law, it would be misleading to give accurate forecasts for quarters and months now. That is why we have a general forecast – a 10% increase in sales in 2024. This will also happen due to the gradual restoration of infrastructure, energy shelters, and destroyed homes,» summarizes Vartis’ commercial director.

As GMK Center reported earlier, in 2023, Ukraine increased rolled steel production by 0.4% compared to 2022, to 5.37 million tons. Exports of steel products in 2023 amounted to 1.78 million tons, while in 2022 – 2.47 million. Imports of the corresponding products last year reached 1.18 million tons, in 2022 – 621.6 thousand tons.