Demand for steel structures for construction purposes is expected to rise by 10–12% in 2025

The Ukrainian steel structure market is consolidating: competition has shifted from price to order fulfillment speed and the comprehensiveness of the offering.

Oleksandr Dunayskyi, CEO of Metal Invest, discusses market figures and trends, the nature of orders in the industry, and the challenges faced by steel structure manufacturers.

The situation in the steel structure market

The steel structures market is showing steady growth in 2025–2026. In 2025, Metal Invest had produced approximately 11,700 metric tons of products, which is 12% more than in 2024 (10,400 metric tons). Market growth in 2025 amounted to approximately 10–12%.

However, the structure of demand has changed dramatically compared to the pre-war period.

The top priority today is protection and energy resilience. Demand has grown significantly for steel structures used in protective enclosures for transformers and other critical infrastructure components.

Another key area is telecommunications and 5G networks: the rollout of next-generation connectivity and the restoration of coverage in de-occupied territories are driving steady demand for tall structures—towers and masts.

At the same time, demand is growing in logistics and the agricultural sector: new “dry ports” are being built on the border with the EU, along with grain terminals and prefabricated buildings that allow facilities to be launched in 3–4 months.

Quality requirements have also changed significantly. The era of “the cheapest black iron” is over. Hot-dip galvanizing has become the de facto standard: customers analyze life-cycle costs (LCC) and realize that a galvanized structure is significantly more cost-effective than one that needs to be repainted every five years at a height of 30 meters.

The market is also becoming more consolidated: small “garage-style” operations are being weeded out due to their inability to provide the necessary certification. The main competitive battle is no longer over the price per ton of steel, but over delivery times and the comprehensiveness of the offer.

Full-cycle plants—those that independently handle design, manufacturing, and galvanizing—have the advantage. Having a large in-house galvanizing tank has become a strategic advantage, allowing companies to avoid logistical risks.

It is worth noting the successes in foreign markets: Ukrainian steel structure producers are actively entering the markets of Poland, Romania, and Moldova thanks to an optimal balance of price and quality.

Demand trends

The domestic market for steel products grew by 12% in 2025, reaching approximately 3.4 million tons. Demand for prefabricated building structures increased by 10–12%—to approximately 100–105 thousand tons. Hot-dip galvanizing services grew by over 12% compared to 2024, confirming the overall trend toward structural durability.

The bulk of demand for steel structures was generated by three sectors:

1. Protection of energy facilities. This segment became the main driver of the market in 2025 and accounted for about 20% of the entire construction market. Demand surged in the second half of the year—especially in the fall, following the resumption of massive attacks on infrastructure. Orders were primarily for anti-drone screens, frames for concrete transformer shelters, reinforced power line towers, and substation components.
2. Infrastructure restoration. Despite an overall reduction in spending on new road construction, the priority shifted to restoring bridges and developing border infrastructure—logistics hubs and ports.
3. Industrial construction and the agricultural sector. Demand for prefabricated buildings remained stable—primarily due to business relocations and the need for new warehouse space in western regions.

Key challenges

The industry faces many challenges, the most significant of which include the following:

1. Labor shortage. This is the number one problem facing the industry. Mobilization and emigration have led to a critical shortage of qualified specialists. The shortage of highly skilled welders capable of working on critical structures under ultrasonic inspection, CNC machine operators, and design engineers is particularly acute—the volume of restoration orders is overwhelming design departments.
2. Energy instability. The production of steel structures is an extremely energy-intensive process, so constant power outages cause significant damage. Companies are forced to invest in industrial diesel generators and energy storage systems (ESS), which significantly depletes working capital. The cost per kilowatt from a generator is 3–5 times higher than the grid tariff, which directly impacts the cost of production. Additionally, sharp voltage fluctuations damage the expensive electronics of laser and plasma cutting machines, as well as CNC equipment.
3. Logistics and raw material supply. Although Ukraine is a steel producer, due to the destruction and occupation of some steel enterprises, not the entire required range of rolled steel is produced domestically—especially for complex structures, such as high-voltage towers. In addition, delays at the western borders disrupt delivery schedules, and shipping costs have risen due to a shortage of drivers and higher fuel prices.

The role of steel structures in postwar reconstruction

It is difficult to predict specific figures, but the general direction of development is clear. Most likely, Ukraine will become part of trans-European transport corridors, which will involve the construction of new bridges, overpasses, and multimodal logistics terminals—“dry ports”—on the border with the EU.

In this context, steel structure producers will play a much broader role than simply being “steel mills.” They will transform into full-fledged engineering centers, ensuring the speed, safety, and durability of the national infrastructure’s reconstruction.

Steel structures will become the “currency” of recovery: every kilogram of steel means a hospital opened on time, restored electricity in homes, and reliable communications at the borders.