Exclusive The Ukrainian steel trading market has stopped growing

The key reason is the reduction in the construction of infrastructure facilities and structures

The situation on the Ukrainian steel trading market is deteriorating. The reason is not only the weak level of business activity and the lack of growth drivers, but also the actual cessation of state funding for the construction of infrastructure and defense facilities.

Market situation

In the first five months of this year, our sales growth in real and financial terms was approximately 15% compared to the same period in 2024. My impression is that the market is not exactly stagnant, but it is not growing at all this year.

There have been no significant changes in demand for construction steel products recently. Currently, sheet steel, I-beams, pipes, angles, etc. are being sold as usual.

Recently, there has been significant growth in competition in the steel trading market. Margins are falling in the market, and there are dumping wars between operators. Our costs per order have doubled. We have increased the number of managers by 50%, but sales have only grown by 15%.

Industry sales

The main trend is a change in the industry structure of orders. Currently, we only have non-government orders—private development and commercial construction. A lot of warehouses and elevators are being built now, as well as feed mills.

Compared to last year, demand for the construction of infrastructure facilities and various protective structures has almost completely disappeared. Such facilities still consumed a large share of steel in 2024, but now this demand has fallen due to the practical absence of funding from the state and other customers.

This applies not only to sales of steel products, but also to the production of steel structures. Currently, almost everything has been frozen at the relevant plants. Some plants are not producing anything at all, while others are finishing old projects, even though they are not being paid.

Railway car manufacturing plants also used to account for a significant share of sales, but today, due to the same financing problems, their share has decreased.

Growth of Turkey’s share

We can see an increase in the share of steel from Turkey in the domestic market. Previously, Turkish steel products accounted for about 15% of imported steel , but today it is about 40%. The main reason for this situation is the attractive price. Everything that Turkish manufacturers offer is significantly cheaper than European counterparts.

The only advantage Europe has is delivery times and greater availability of products in the warehouses of all manufacturers and large distributors. In other words, if you need small batches of steel in a short time, Europe is the place to go. Anything that can wait or large batches of products should be sourced from Turkey.

Regional sales

We sell steel throughout Ukraine, but over the last two to three months, with the start of the construction season, our sales in Western Ukraine have increased. The western regions have always accounted for 20-30% of our sales in tons, but today it is more than 50%. Other leaders in terms of consumption are the Kyiv and Dnipropetrovsk regions.

For obvious reasons, demand from Kharkiv has fallen significantly. Last year, we regularly supplied steel there, but this year we only make occasional deliveries. Zaporizhia has also fallen sharply.

The problem of staff shortages

The key problem for our industry is personnel. If a company cannot offer employee reservations now, there is no chance of hiring anyone at all. But even with reservations (Euro Metal has the necessary status), we are experiencing a shortage of people because they are simply not physically available. It is a little easier for us to find employees, but it is still a big problem.

In other industries, the lack of people is a disaster. In particular, for builders and installers who have to travel around Ukraine. Nowadays, many clients have switched to a format where employees live directly on the production site or somewhere nearby, for which they build or rent entire dormitories.

As for installers who have to install certain structures, no one wants to leave the city. There are simply no people who are willing to travel anywhere. In such cases, companies simply refuse to take on such work.