Exclusive 2025 year in review: Ukraine’s market for coated and galvanized steel

The market situation for coated steel is better for domestic producers than in the galvanized steel segment

By the end of 2025, the Ukrainian markets for painted and galvanized rolled steel had shown varying degrees of growth; however, trends in domestic production and imports differed significantly. This was reported by Denis Risukhin, Director of Metipol, during his speech at a meeting of the Committee on Roofing, Facade Systems, and Light Gauge Steel Structures of the Ukrainian Center for Steel Construction (UCSC) Association. GMK Center presents the key points of his speech.

The market for coated (polymer-coated) rolled steel

Overall market summary

By the end of 2025, the market for coated (polymer-coated) steel reached the 300,000-ton mark for the first time since the post-war years, totaling 303,000 tons. Growth compared to the previous year was only 3%.

Recovery in previous years occurred at a faster pace, and pre-war market volumes of 330–360 thousand tons remain out of reach: the current figure is still 15–20% below the pre-crisis level.

The forecast for 2026 is 310,000 tons, which corresponds to growth of approximately 5%.

Ukrainian producers

In 2025, four domestic manufacturers were operating in this market. In February, production at the Heavy Metal plant in Pervomaisk was temporarily suspended; the date for its resumption has not yet been determined. A new manufacturer began operations in Zhytomyr.

Despite the shutdown of one of the plants, the total volume of coated steel shipments to the domestic market reached a record 116,000 tons. Rapid production growth has been recorded for the fourth consecutive year. All operating plants have increased their output.

Currently, some plants are operating at nearly full capacity, while others are running at 25–50%. The total capacity of all Ukrainian enterprises is estimated at 220–250 thousand tons per year. With 116 thousand tons produced, capacity utilization stands at approximately 50%, indicating significant potential for increasing output.

The share of Ukrainian producers in the domestic market reached 38% by the end of 2025. In recent years, it has been steadily growing by 7–8 percentage points annually. If the current trend continues, Ukrainian products could capture over 50% of the market in two years.

Export trends

In 2025, Ukrainian producers increased exports to 14,900 metric tons, an 84% increase compared to 2024. The main export markets remain Poland (accounting for approximately 80% of export volume), Moldova, and the Baltic states.

The key factor driving export growth was the sharp rise in the price of rolled steel in Europe, making shipments there more profitable compared to the domestic market. Manufacturers holding a Ukrainian certificate of origin can relatively easily enter the EU market and sell their products at high profit margins.

Import structure and segment trends

In 2025, the coated steel market was divided almost equally among three segments: the European (top-tier), Ukrainian, and middle-tier (Vietnam, South Korea, Turkey) segments — each accounting for approximately 100,000 tons. For the first time ever, Ukrainian products took first place with a 38% share.

The European segment, which traditionally held the leading position, shrank by approximately 10 percentage points and moved into second place. The reason is the rapid rise in prices: European polymer-coated steel became $150–200 per ton more expensive in 2025. By early 2026, the price gap between the European and middle segments reached $400 per ton (compared to $200 in early 2025). The introduction of the CBAM in Europe added another €50–70 per ton to the cost, which further accelerated the displacement of European products.

Within the mid-tier segment, the following trends were observed in 2025:

1. South Korea and Turkey maintained their previous volumes — 24,000–25,000 tons each — and their market shares remained virtually unchanged.
2. Vietnam saw nearly double the growth, taking the lead in the segment by price following the exit of China and Malaysia.
3. India lost nearly a third of its demand due to high prices.
4. China and Malaysia effectively lost their market significance following the imposition of definitive anti-dumping duties against Malaysia in 2025 (similar to the measures previously taken against China). Currently, imports from these countries consist mainly of super-thin rolled steel (0.19–0.25 mm), which remains price-competitive even after accounting for the duties.

Price trends

Throughout 2025, the price of European polymer-coated steel rose significantly. At the beginning of the year, its price was comparable to that of Korean products and exceeded the Turkish price by approximately $150–200. By the end of the year, the difference between European and Turkish price levels had reached $400 per ton.

The price increase was driven by two factors: the appreciation of the euro against the dollar and increased domestic demand in Europe amid expectations of the introduction of the CBAM. The initial price difference and its subsequent widening led to a decline in European imports to Ukraine, as confirmed by data for January–February 2026.

Galvanized steel market

Overall market summary

In 2025, the galvanized steel market had shown a fundamentally different trend compared to the painted steel market: growth stood at 39%, and total consumption reached 292,000 tons. For comparison: the pre-war figure was 316,000 tons, meaning the market has practically recovered.

This significant growth is largely due to increased activity among domestic producers of painted coil: the four operating plants collectively consumed approximately 100,000 tons of galvanized steel as raw material for further processing.

Ukrainian producers

Following the loss of key production facilities in Mariupol, two companies remain active in the domestic market: “Modul-Ukraine” and “Unistil.” The total volume of finished products shipped to the Ukrainian market remains at 80,000–85,000 tons and has remained virtually unchanged compared to previous years.

Amid rapid market growth, the stagnation of domestic production is leading to a steady decline in the market share of Ukrainian companies. Over five years, it has fallen from 70% to 27%. The outlook remains unfavorable: there are no obvious sources for restoring this share.

One reason is the higher margins on export shipments, primarily to EU countries. As a result, the Ukrainian market is supplied last, and it becomes practically impossible to compete with cheaper imported products, primarily those of Turkish origin.

Import structure

Imports of galvanized steel reached a record 212,000 tons in 2025. Turkey remains the undisputed leader: the entire increase in imports for the year was attributable to Turkey. Supplies from Turkey rose from 150,000 tons (2024) to 174,000 tons (2025), and its market share increased from less than 50% to 60%.

The share of European galvanized steel, on the other hand, is shrinking. The reason is a price increase of approximately 15–20% in 2025, which has led even those polymer coil manufacturers who previously purchased European galvanized steel to largely abandon it. At the beginning of 2025, the price difference between European and Turkish galvanized steel with comparable specifications was approximately $100 per ton; by the end of the year, it had risen to $250.

The introduction of quotas and additional tariffs in Europe is exacerbating the situation: European galvanized steel continues to become more expensive, and its share in the Ukrainian market will likely continue to decline. Other supplier countries (China, Vietnam) hold a negligible share in this segment.

The galvanized steel market is increasingly centered around Turkish imports: the number of importers is growing, and Turkey is establishing itself as the undisputed No. 1 player in this segment.