Business news from Ukraine

Business news from Ukraine

Industrial production in Ukraine fell by 1.9% over first nine months

4 November , 2026  

According to Experts.news, metallurgical production in Ukraine from January through September 2026 fell by 18.2% compared to the same period last year, while production volumes in the electricity, gas, steam, and air conditioning supply sector fell by 16.7%, the State Statistics Service of Ukraine (Derzhstat) reported on November 3.

According to the published data, a significant decline was also recorded in the production of coke and refined petroleum products—by 18.1%.
At the same time, the mining and quarrying sector showed a much smaller decline—by 0.2% compared to January–September 2025.

The negative trend in key industrial sectors is occurring against the backdrop of Russian attacks on industrial and energy infrastructure, energy supply restrictions, and the shutdown of certain large manufacturing enterprises.
In particular, according to information from the “Ukrmetallurgprom” association of enterprises, released on October 9, Ukrainian metallurgical enterprises reduced steel production by 19.8% in January–September 2026 compared to the same period last year—to 4.431 million metric tons.

Pig iron production during this period decreased by 22.9%, to 4.463 million metric tons, while total rolled steel production fell by 23%, to 3.729 million metric tons.
A particularly significant decline was observed in September. According to preliminary data from the industry association, only 131,000 metric tons of steel were produced during the month, compared to 277,000 metric tons in August—a 52.7% decrease.

Pig iron output in September totaled 113,000 metric tons, compared to 257,100 metric tons in August, while rolled steel output stood at 137,000 metric tons, compared to 269,500 metric tons the previous month.
Thus, in just one month, steel smelting, pig iron production, and rolled steel output all fell by approximately half.

The figures provided by “Ukrmetallurgprom” reflect the output of specific types of metallurgical products in metric tons, whereas the State Statistics Service calculates the industrial production index based on a broader range of products within the relevant economic sector.
The challenges facing the metallurgical industry have implications for related sectors of the Ukrainian economy, including iron ore mining, rail transportation, the energy sector, coke production, and the scrap metal market.

The decline in steel production also limits the industry’s ability to export metal products and generate foreign exchange earnings from its operations.
Overall, industrial production in Ukraine fell by 1.9% over the first nine months of 2026, and in September, the decline accelerated to 9.2% year-over-year.

As previously reported, in 2025 the overall industrial production index fell by 1.7%, whereas in 2024 it rose by 4.7%.
Data from the State Statistics Service do not include temporarily occupied territories or parts of territories where hostilities are ongoing or have taken place.

Sources: State Statistics Service of Ukraine, data for January–September 2026; “Ukrmetallurgprom,” metallurgical industry performance results as of October 9, 2026.

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