Ukrainian steel does not pose a threat to the US steel industry – Ukrmetprom

The industry association calls on the government to convince the US to extend the 25% import duty exemption

Ukrmetprom, an association of companies representing the interests of the domestic steel industry, has expressed concern over the US administration’s decision to reintroduce a 25 percent duty on imports of Ukrainian steel products.

According to the statement, the US proclamation recognizes that Ukrainian steel products do not threaten the US steel industry, as their share does not exceed 0.5% of total US steel imports.

At the same time, the OP notes that a certain increase in imports of steel smelted in Ukraine and processed in the EU was largely due to the supply of rebar from the Bulgarian plant Promet Steel, which was made from billets produced by Ukraine’s Kamet-steel, both of which are part of the Metinvest group.

At the same time, the total value of steel supplied to the US from Ukraine in 2024 (directly or through processing in the EU) amounted to $258 million, or 0.81% of total US steel imports.

“This indicates that steel of Ukrainian origin (supplied both directly and through processing in the EU) cannot threaten the US steel industry,” Ukrmetprom said.

In addition, the exemption of Ukrainian steel, including that originating from the assets of Ukrainian companies in the EU, from import duties is a significant support for the country in the face of unprovoked military aggression by Russia, as it allows it to support the work of domestic exporters and fill the budget.

The statement says that if import duties on Ukrainian steel are returned only for Metinvest Group, a reduction in rebar exports to the United States from its Bulgarian assets will mean a decline in production:

• steel billets at Kamet-steel – by 120 thousand tons
• iron ore production – by 180 thousand tons,
• railroad transportation by 400 thousand tons,
• transshipment volumes in ports – by 200 thousand tons.

In turn, this will lead to a loss of $58 million in foreign exchange earnings and a reduction in tax payments to the state budget of Ukraine by UAH 1 billion.

The return of the 25% US duty on steel imports, Ukrmetprom notes, will also deal a significant blow to US consumers of steel pipes, especially in the oil and gas sector. US pipe producers cannot meet domestic demand on their own, requiring imports, which currently account for 30% of total US consumption of these products.

Ukraine supplies seamless OCTG and line pipe to the US, mainly for the oil and gas industry. All pipes exported to the US are 100% produced in Ukraine and from domestic raw materials. The products are shipped directly to American customers, with approximately 40% of the total export volume undergoing additional processing in the United States.

“These pipes are manufactured in Ukraine at Interpipe Niko Tube, a pipe plant located in Nikopol, a frontline city just 4.7 km from the Russian-occupied ZNPP. According to preliminary estimates, the additional 25% duty will lead to a potential 36% reduction in production at the plant. This, in turn, threatens the livelihoods of the plant’s staff and the local community, dealing a serious blow to both the city and Ukraine’s economic stability,” Ukrmetprom emphasizes.

Despite the losses in the war that has been going on for ten years, the Ukrainian mining and metals sector remains the country’s leading industry. In 2024, Ukrainian miners and metallurgists accounted for 6% of GDP and almost 16% of total Ukrainian exports, and the country’s four largest steel companies paid UAH 32.4 billion in taxes to the budget. Even after losing half of its capacity as a result of the hostilities, Ukraine’s steel industry provides 70,000 jobs directly at steelmaking facilities and more than 280,000 in related industries.

Ukrmetprom believes that the government should take all measures to persuade the US to further extend the exemption until March 12, 2026, from the additional 25 percent import duty on steel products manufactured in Ukraine and the EU from steel smelted and cast in Ukraine. The WTO is ready to provide the Ukrainian authorities with any assistance and support.

As previously reported by First Vice Prime Minister and Minister of Economy Yulia Svyrydenko, Ukraine is committed to working with the US to find an optimal solution to the steel and aluminum tariffs.