Ukraine increased rolled steel production by 3.4% y/y in Q1

In January-March 2025, Ukrainian steel enterprises increased production of commercial rolled steel products by 3.4% compared to the same period in 2024, up to 1.43 million tons. This was reported by Ukrmetprom.

Pig iron production for the period increased by 7.2% y/y – to 1.7 million tons, and steel production by 2.7% y/y – to 1.73 million tons. Compared to the previous quarter, rolled production increased by 2.5%, steel production by 2.5%, and pig iron production decreased by 1.8%.

In March of this year, the country’s steelmakers increased rolled steel output by 0.3% compared to the previous month, but reduced it by 2.1% y/y – to 478.4 thousand tons. Pig iron production increased by 3.5% m/m and 4.6% y/y – to 563.2 thousand tons, while steel production decreased by 3.7% m/m and 9.9% y/y – to 550.5 thousand tons.

The increase in pig iron production while reducing steel and rolled products in March reflects the prevalence of export demand for steelraw materials over finished products. In particular, the month saw a surge in commercial pig iron exports of 300.9 thousand tons, the highest monthly volume since 2021. Demand grew both in the US and the EU, likely due to uncertainty over Donald Trump’s further import tariffs.

As GMK Center reported earlier, in 2024, Ukraine’s steel industry increased rolled steel production by 15.8% compared to 2023, from 5.37 million tons to 6.22 million tons. Last year, pig iron production increased by 18.1% y/y, from 6 million tons to 7.09 million tons, and steel production increased by 21.6% y/y, from 6.23 million tons to 7.58 million tons.

The industry’s performance in 2024 was much better than expected. At the same time, GMK Center analysts predict that 2025 will be a difficult year as the global steel market is going through a crisis. Ukraine’s steel exports are likely to decline, the price situation will deteriorate, and import restrictions will tighten around the world.