In 2024, Metinvest Mining and Metallurgical Group significantly increased its total exports and sales of iron ore to more than 12 million tons and significantly reduced production costs, Metinvest CEO Yuriy Ryzhenkov said in an interview with Forbes Ukraine.
“We have fully returned to the operational efficiency improvement program. For example, we have reconfigured our business process to use our own raw materials. And by most indicators, I mean technical, technological, and production ones, we have returned to the best results of 2020-2021,” the CEO stated.
According to him, the main disadvantage is the electricity outage and problems with its import. Another problem is the increase in tariffs for the services of natural monopolists, primarily the increase in electricity transportation tariffs and logistics. In addition, the aggressor’s offensive towards Pokrovsk. As a result, the group was forced to suspend the mine’s operations due to the inability to ensure electricity supply and safety factors for employees.
“We were preparing for this and diversified our supply chain for the same coal – we contracted as much as we could from other companies and shipped it for Ukraine’s needs from our plant in the US. We will definitely not stop steel production because of the temporary shutdown of the Pokrovsk mine. But it will have a serious impact on the company’s economy. Instead of supplying coal via the nearest logistics route, from Pokrovsk to Zaporizhzhia and Kamianske, we will now have to buy coal all over the world, and the logistics component will have a significant impact on our production costs. In general, up to 10% of the cost of coal,” said the CEO.
Answering a question about Donald Trump’s economic policy and expectations for the consequences for the global economy, Ryzhenkov explained that “it is not really known which initiatives of Donald Trump are serious and which are working to raise rates or invite to a dialogue.”
“We see tumultuous actions that make waves in the entire global economy, currencies, and so on. How will it all end? When a major power like the United States turns to protectionism, it is a serious problem for the global economy and, by the way, for the United States itself. It’s just that they will feel the consequences later – in three to four years,” the top manager predicts.
In turn, he noted that Metinvest’s deliveries to the US are insignificant – not even within the margin of error: “The largest share is pig iron, which is not subject to duty, and I think this will not change – it is the raw material for the American economy.”
Speaking about staffing issues, the CEO said that more than 20% of the group’s employees, or 30% of those liable for military service, are currently mobilized. Ryzhenkov believes that we need a normal, well-thought-out reservation system that will allow us to work. Reservations are not a privilege for business, as some say, but an integral part of preserving the economic basis of the state’s defense capability. If the economy does not work, Ukraine will lose the war, despite the support of the West.
As for the export strategy, it has not changed much compared to the period before the full-scale war.
“There are our key markets – Ukraine, the EU countries, where we supplied more than 50% of our products before the full-scale invasion. And then there are all the others, the so-called balance markets, which are characterized by a more opportunistic approach to supply. When it’s profitable for us, we go there, and when it’s not profitable, we don’t go there,” the CEO stated.
The Group’s key markets for iron ore are the EU countries. And the company has expanded them, entering Scandinavia and the Nordic countries. What we cannot sell in the EU due to limited consumption volumes is sold to Southeast Asia: China, South Korea, and so on, said the company’s CEO.
“The main thing we have focused on is the production of iron ore with a higher iron content, which is now in demand. We have already mastered its production at our joint venture, Pivdennyi GOK. Before the full-scale invasion, we did it at our Central GOK,” explained the CEO.
Regarding the forecast – what factors will have the greatest impact on exports in 2025 and what are the potential critical risks – Ryzhenkov divides them into several blocks. The first is to maintain the competitiveness of Ukrainian producers in foreign markets. This requires that state-owned monopolies do not create additional tariff pressure on operating businesses.
The second is maintaining access to foreign markets (it is important to preserve the liberalization of steel trade with the EU, the US, and the UK) and strengthening sanctions against the Russian metals and mining industry, which continues to sell slabs and pig iron to the EU because of the position of certain countries.
The third is a consistent environmental and industrial policy of the state on eco-modernization and decarbonization. Ukraine needs a delay in the CBA because of the war. And confirming the criticality of booking and engaging veterans in the workforce will remain a relevant factor because of the risk of losing qualified personnel.
“As for new challenges, it is access to financing for modernization and green transition projects in the mining and metals sector, as well as ensuring stable demand for Ukrainian steel in the domestic market. But these topics are post-war, and we can talk about them separately when peace comes,” the expert believes.
Speaking about the energy independence of Metinvest’s enterprises, the CEO said that the group has its own generation, about 45-50 MW, which provides the most critical processes – about 10% of the company’s energy consumption. Another 40 MW of gas-fired generation is under construction, which will be commissioned in 2025, and solar panels are also being installed.
Regarding investments, the CEO emphasized that due to security risks, the company cannot invest in Ukraine as before. There were serious investment plans in Mariupol, Kryvyi Rih, Zaporizhzhia, and Kamianske. Nevertheless, in 2024, the total investment volume reached about $670 million at the group’s sites in Ukraine. This includes both OPEX and CAPEX. As soon as the company is able to attract financing, there will be plans for large projects.
This year, we also have many plans, for example, a tailings pulp thickening project at Northern GOK and the repair of blast furnace No. 9 at Kametstal are being implemented at our own expense. The volume of investments in these projects in Ukraine alone is about $50 million.
Investment plans abroad include the largest project for the coming years – the construction of a green steel plant in Italy. The estimated cost of the joint project is EUR 2.5 billion.
Among other potential acquisitions, the company is interested in Eastern and Southern Europe – regions where it is possible to create synergies with the group’s existing business processes and Ukrainian assets. The company may take part in a tender for the sale of the Polish plant Huta Chestochowa, which once belonged to the Industrial Union of Donbass.
“In Ukraine, we have a $8 billion strategy for the green modernization of Ukrainian enterprises for 7-10 years. We are ready to launch this strategy as soon as the war is over and Ukraine receives security guarantees,” Ryzhenkov added.
“Metinvest is a vertically integrated group of steel and mining companies. The group’s enterprises are mainly located in Donetsk, Luhansk, Zaporizhzhia and Dnipro regions. The main shareholders of the holding are SCM Group (71.24%) and Smart Holding (23.76%), which jointly manage it.
Metinvest Holding LLC is the management company of Metinvest Group.
As of February 21, Ukraine exported 28.219 mln tonnes of grains and pulses since the beginning of 2024-2025 marketing year, of which 2.528 mln tonnes were shipped this month, the press service of the Ministry of Agrarian Policy and Food reported citing the State Customs Service.
According to the report, as of the same date last year, the total shipments amounted to 27.627 mln tons, including 3.751 mln tons in February.
In terms of crops, since the beginning of the current season, Ukraine has exported 11.714 mln tonnes of wheat (910 thsd tonnes in February), 2.113 mln tonnes of barley (49 thsd tonnes), 10.8 thsd tonnes of rye (0), and 13.954 mln tonnes of corn (1.561 mln tonnes).
The total export of Ukrainian flour since the beginning of the season as of February 21 is estimated at 46.4 thsd tonnes (2.9 thsd tonnes in February), including wheat – 42.9 thsd tonnes (2.8 thsd tonnes).
In January of this year, Ukraine increased exports of ferroalloys in physical terms by 35.4 times compared to the same period last year, up to 8,331 thousand tons from 235 tons.
According to statistics released by the State Customs Service, exports of ferroalloys increased 10-fold to $8.655 million in monetary terms.
The main exports were to Algeria (42.11% of supplies in monetary terms), Poland (41.96%) and Austria (8.79%).
In addition, last month Ukraine imported 5.298 thousand tons of these products, a 24.5% decrease compared to January 2014. In monetary terms, imports fell by 33.8% to $8.442 million.
Imports were mainly from Norway (32.80%), Kazakhstan (27.85%) and Georgia (9.11%).
As reported, Pokrovsky Mining and Processing Plant (PGOK, formerly Ordzhonikidze Mining and Processing Plant) and Marganetsky Mining and Processing Plant (MGOK, both in Dnipropetrovska oblast), both part of Privat Group, stopped mining and processing of crude manganese ore in late October and early November 2023, while NFP and ZFP stopped smelting ferroalloys. In the summer of 2024, ferroalloy plants resumed production at a minimal level.
In 2024, Ukraine reduced exports of ferroalloys in physical terms by 4.45 times compared to 2023 – to 77.316 thousand tons from 344.173 thousand tons, while in monetary terms, exports decreased by 3.4 times – to $88.631 million from $297.595 million. The main exports were to Poland (27.40% of supplies in monetary terms), Turkey (21.53%) and Italy (19.82%).
In addition, last year Ukraine imported 82.259 thousand tons of these products compared to 14.203 thousand tons in 2023 (an increase of 5.8 times). In monetary terms, imports increased by 3.3 times to $140.752 million from $42.927 million. Imports were carried out mainly from Poland (32.71%), Norway (19.55%) and Kazakhstan (13.90%).
Prior to the nationalization of the financial institution, PrivatBank organized the business of ZZF, NZF, Stakhanovsky ZF (which is on the NKT), Pokrovske and Marganetske GOKs. Nikopol Ferroalloy Plant is controlled by EastOne Group, established in the fall of 2007 as a result of the restructuring of Interpipe Group, and Privat Group.
In January of this year, Ukraine reduced exports of processed pig iron by 9.6% in physical terms compared to the same period last year, to 128.592 thousand tons.
According to statistics released by the State Customs Service (SCS), pig iron exports in monetary terms increased by 3.2% to $51.581 million in the period under review.
Exports were mainly to the United States (89.95% of shipments in monetary terms), the Netherlands (3.83%) and Poland (3.48%).
In the first month of the year, the country did not import pig iron, as it did in January 2014.
As reported, in 2024, Ukraine reduced exports of processed pig iron by 3.4% in physical terms compared to 2023 – to 1 million 290.622 thousand tons, and by 6.1% in monetary terms – to $500.341 million. Exports were mainly to the United States (72.64% of supplies in monetary terms), Turkey (8.03%) and Italy (7.30%).
In 2024, the country imported 38 tons of pig iron worth $90 thousand from Germany, while in the same period of 2023 it imported 154 tons of pig iron worth $156 thousand.
In January of this year, Ukrainian companies reduced exports of ferrous scrap by 8.5% year-on-year to 15,696 thousand tons from 17,160 thousand tons.
According to statistics released by the State Customs Service (SCS), 31.612 thousand tons of scrap were exported in December 2014, 34.608 thousand tons in November and 24.549 thousand tons in October.
In monetary terms, scrap exports in January decreased by 13.2% to $4.406 million from $5.078 million.
Scrap metal exports in January-2025 were carried out mainly to Poland (96.57% of supplies in monetary terms) and Germany (3.43%).
In the first month of the year, Ukraine imported 3 tons of scrap metal worth $1 thousand from the British Virgin Islands.
As reported, in 2024, Ukraine’s scrap collecting enterprises increased exports of ferrous scrap by 60.7% compared to 2023 – to 293,190 thousand tons from 182,465 thousand tons. In monetary terms, the export of scrap metal increased by 73.2% to $91.311 million from $52.723 million over the year. Scrap metal exports in 2024 were mainly to Poland (81.80%), Greece (13.75%) and Germany (3.19%).
For the whole of last year, the country imported 104 tons of scrap metal worth $110 thousand, while in 2023 it imported 1,075 thousand tons worth $411 thousand. Imports were carried out mainly from Turkey (64.55% in monetary terms), the British Virgin Islands (16.36%) and Panama (8.18%).
The exports of high-oleic sunflower oil from Ukraine in 2024-2025 marketing year continue to decline, which is typical for the sector for the fifth consecutive season, APK-Inform news agency reported.
“In September-December of the current season, the country shipped only 57 thsd tonnes of the oil to the foreign markets, which is 52% down from the same period last season and the lowest in the last seven seasons,” the analysts said.
Moreover, the share of high oleic oil in the total exports of sunflower oil in 2024/25 MY decreased to 3%, compared to 5-8% in the previous several seasons.
“The main reasons for the decline in the supply of high oleic sunflower oil are the decrease in the production of high oleic sunflower last year and the restraint of the oilseed sales by the farmers due to the significant increase in the price of the classic hybrids of the crop and the record premiums for high oleic sunflower from the Ukrainian processors,” the experts explained.
Thus, given the available stocks of HO sunflower oil among farmers and the likely more active sales of this crop in the spring in the second half of the current season, the volumes of processing and, accordingly, exports of HO oil may increase.
According to the analysts, the potential of exports of HO sunflower oil in the season-2024/25 is about 220-240 thsd tonnes against 289 thsd tonnes in the previous season and may be the lowest in many years.
At the same time, the increase in the price of sunflower oil in the current season and high-oleic oil in particular, as well as the growth of the premium for rapeseed oil on the world market may be the additional factors of the slowdown, APK-Inform forecasts.
