Ukrainian steel industry is operating at 92% capacity utilization – deputy minister

Despite the war, Ukraine’s steel industry is operating at 91.9% capacity. This was announced by Andriy Telyupa, Deputy Minister of Economy, Environment, and Agriculture, at an online meeting of the Global Forum on Steel Excess Capacity (GFSEC).

According to him, 4.91 million tons of steel were produced in Ukraine in the first eight months of this year. Before the war, Ukrainian steel production capacity reached 25.3 million tons per year. Currently, 40% of this capacity has been lost due to occupation and destruction.

“The Ukrainian steel industry is currently operating at its limits. For the industry to recover, the world must adhere to fair rules of play in the steel market,” Andriy Telyupa noted.

The deputy minister emphasized that Ukraine is not creating excess supply; on the contrary, it must protect its domestic market from dumped imports. Therefore, the country is interested in observer status in the GFSEC.

“Joint, balanced decisions will help balance the market and protect Ukrainian producers,” he concluded.

In 2024, Ukraine’s steel industry increased its 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 results in 2024 turned out to be much better than expected. At the same time, according to GMK Center analysts’ forecasts, 2025 will be difficult as the global steel market is going through a crisis period. Steel exports from Ukraine are likely to decline, the price situation will worsen, and import restrictions will tighten around the world.