According to preliminary data, Ukrainian metallurgical companies reduced steel production in January-February of this year by 13.2% compared to the same period last year, to 1.026 million tons.
According to information from the Ukrmetallurgprom association on Monday evening, 515,000 tons of steel were produced in February, compared to 511,100 tons in the previous month.
As reported, Ukrainian steel companies reduced steel production by 2.2% in 2025 compared to 2024, to 7.409 million tons.
In 2024, Ukraine increased steel production by 21.6% compared to 2023, to 7.575 million tons.
In 2023, Ukraine reduced steel production by 0.6% compared to 2022, to 6.228 million tons.
In 2022, the country reduced steel production by 70.7% compared to 2021, to 6.263 million tons.
In pre-war 2021, 21.366 million tons of steel were produced, which was 103.6% of the 2020 level.
According to preliminary data, Ukrainian metallurgical companies reduced their total rolled steel production in January-February this year by 16.8% compared to the same period last year, from 957,000 tons to 797,000 tons.
According to information from the Ukrmetallurgprom association on Monday evening, 390,300 tons of rolled steel were produced in February, compared to 406,400 tons in the previous month.
As reported, Ukrainian steel companies increased their total rolled steel production by 4.8% in 2025 compared to 2024, to 6.521 million tons from 6.222 million tons.
In 2024, Ukraine increased its total rolled steel production by 15.8% compared to 2023, to 6.222 million tons from 5.372 million tons.
In 2023, Ukraine increased its total rolled steel production by 0.4% compared to 2022, to 5.372 million tons.
In 2022, the country reduced its total rolled steel production by 72% compared to 2021, to 5.350 million tons.
In pre-war 2021, 19.079 million tons of rolled steel were produced, which was 103.5% of the 2020 level.
According to preliminary data, Ukrainian metallurgical enterprises reduced pig iron production in January-February of this year by 11.2% compared to the same period last year, to 1.012 million tons.
According to information from the Ukrmetallurgprom association on Monday evening, 461,900 tons of pig iron were produced in February, compared to 549,900 tons in the previous month.
As reported, Ukrainian metallurgical enterprises increased pig iron production by 11.2% in 2025 compared to 2024, to 7.884 million tons.
In 2024, Ukraine increased pig iron production by 18.1% compared to 2023, to 7.090 million tons.
In 2023, Ukraine reduced pig iron production by 6.1% compared to 2022, to 6.003 million tons.
In 2022, the country reduced pig iron production by 69.8% compared to 2021, to 6.391 million tons.
In pre-war 2021, 21.165 million tons of pig iron were produced, which was 103.6% of the 2020 level.
In 2025, the Zaporizhstal Iron and Steel Works continued to implement its “Work Amenities” program, allocating a total of over UAH 13 million to renovate employee amenities.
According to the plant’s press release, in 2025, the company carried out major repairs of sanitary and amenity facilities in the open-hearth shop, the control and measuring instruments and automation shop, the motor transport department, and the central electrical engineering laboratory, and repairs of the sanitary and amenity facilities of the water supply shop are ongoing.
The total area of the renovated premises will be 530 m².
In particular, the plant recently commissioned a renovated sanitary and utility room in the open-hearth shop with an area of over 280 m². The facility underwent a major overhaul with a complete replacement of engineering networks, window and door blocks, and sanitary equipment, as well as a set of finishing works.
It is noted that the implementation of the “Working Conditions” program will continue in 2026. The program plans to further renovate the sanitary and amenity facilities of the open-hearth shop and the water supply shop, install water heaters, and equip a modern laundry complex.
Metinvest Group’s corporate program “Working Conditions,” which involves the modernization of utility rooms in production units, has been in effect at Zaporizhstal since 2012. During this time, more than 240 utility rooms have been renovated at the plant, with total investments exceeding UAH 260 million.
Zaporizhstal is one of Ukraine’s largest industrial enterprises, whose products are in high demand among consumers both in the domestic market and in many countries around the world.
Zaporizhstal is a joint venture of the Metinvest Group, whose main shareholders are System Capital Management (71.24%) and Smart Steel Limited (23.76%). Metinvest Holding LLC is the managing company of the Metinvest Group.
The Ukrainian metallurgical industry continues to show positive recovery dynamics after a sharp decline due to the full-scale war. At the end of 2025, companies increased their total rolled steel production by 4.8% to 6.521 million tons, compared to 6.222 million tons in the previous year. This marks the second consecutive year of growth after a sharp decline in 2022.
However, statistics for 2025 revealed an ambiguous trend: with an increase in the output of finished rolled products, steel production for the year decreased slightly by 2.2% to 7.409 million tons. Such indicators may indicate the use of imported billets or strategic reserves of raw materials by enterprises. In December 2025, rolled steel production amounted to 554,400 tons, and steel production amounted to 596,700 tons.
Overall, the steel industry is showing resilience and potential for further recovery. Over two years (2024-2025), rolled steel production grew by more than 21% overall, and steel production by 19%. However, production volumes are still significantly lower than pre-war levels: in 2021, Ukraine produced over 21 million tons of steel and 19 million tons of rolled steel, which is three times higher than current figures.
Ukrainian metallurgical companies may increase steel production by 17% in 2026, to 8.9 million tons from 7.6 million tons in 2025, said Serhiy Povazhnyuk, deputy director of the state-owned enterprise Ukrpromzovnishchexpertiza, in an interview with telegraf.com.ua.
According to him, the main factors limiting production were security-related military risks, staff shortages, unstable electricity supplies due to missile and drone strikes on energy infrastructure, and the continuing shortage of scrap metal on the domestic market.
“As for the forecast for 2026, metallurgical plants have already announced plans to significantly increase liquid steel production, to approximately 8.9 million tons,” the expert said.
At the same time, he noted that the Ukrainian metallurgical industry is experiencing an acute shortage of ferrous metal scrap, in particular due to the growth in exports of this raw material abroad.
“If metallurgical plants manage to implement the planned increase in production, there may simply not be enough scrap metal collected. Domestic consumers should be given priority in terms of raw material supplies, especially now, during wartime,” said Povazhnyuk.
He cited calculations according to which 1 ton of scrap metal, which is processed into metal products at Interpipe’s facilities, for which scrap is the main raw material, brings the state UAH 7,500 in taxes. In addition, 1 ton of scrap used at Metinvest Group’s plants generates about UAH 9,300 in tax revenues to budgets at all levels.
As Povazhnyuk emphasized, this is a direct benefit that the state receives by keeping all scrap metal in the country and processing it into steel. In addition, such processing has a multiplier effect on the entire economy, as it stimulates growth in related industries, such as the production of iron ore, coke, and ferroalloys.
“All this needs to be transported within the country, which means that the transport industry receives additional cargo. According to calculations, these sectors will pay an additional 5.5-5.8 thousand UAH in taxes to the budget per ton of scrap metal consumed. Therefore, the total effect for the budget from processing 1 ton of scrap metal in Ukraine will be 13-14 thousand hryvnia/ton. In addition to cash inflows to the budget, metallurgical plants provide tens of thousands of official jobs for themselves and related enterprises,” the deputy director argued.
In addition, Povazhnyuk stated that exporters pay taxes and payroll charges (personal income tax, social security contributions, military tax), land tax, and income tax.
“According to our data, in 2024, the largest exporting companies, which accounted for almost 90% of Ukrainian scrap metal exports, exported a total of 247,000 tons of raw materials abroad, paying a total of only UAH 12.3 million in taxes. Thus, the state received an average of UAH 50 in taxes for each ton of scrap metal exported. The official number of employees in these companies was only a few dozen people,” said the expert, specifying that the calculations were made based on open data on the financial performance of companies available through the OpenDataBot service and other public sources.
At the same time, Poland has begun discussing the abolition of trade preferences for the Ukrainian metallurgical industry due to Ukraine’s intentions to introduce a de facto ban on the export of ferrous metal scrap. This was written on his social media page by Michal Poluboczek, a member of the Polish Sejm from the Confederation party.
According to the draft resolution of the Cabinet of Ministers “On the approval of lists of goods subject to licensing for export and import, and quotas for 2026,” it is proposed to set the quota for ferrous metal scrap for the next year at zero, which means a de facto ban on the export of ferrous metal scrap.
As reported, in January-November 2025, Ukrainian scrap collection companies increased exports of ferrous metal scrap by 45.3% compared to the same period in 2024, from 261,578 thousand tons to 380,165 thousand tons. In monetary terms, scrap exports increased by 37.4% to $112.782 million from $82.056 million. During the period in question, scrap exports were formally carried out mainly to Poland (79.80% of shipments in monetary terms), Greece (7.61%), and Italy (5.70%).
In addition, it was reported that due to the sharp increase in exports of strategic raw materials from Ukraine, the Ministry of Economy initiated the introduction of a licensing and quota regime for scrap exports with a zero quota. A public discussion of the draft resolution is currently underway. Its implementation is expected to contribute to the smooth operation of Ukraine’s metallurgical and foundry industries, as well as to stabilize the situation with regard to meeting the demand for scrap on the domestic market.
In 2024, Ukraine’s scrap collection companies increased their exports of ferrous metal scrap by 60.7% compared to 2023, from 182,465 thousand tons to 293,190 thousand tons. In monetary terms, scrap exports for the year increased by 73.2% to $91.311 million from $52.723 million.
Earlier, Valentin Makarenko, chairman of the board of Interpipe Vtormet, said in an interview with Interfax-Ukraine that ferrous metal scrap exports have always been and remain a threat to the Ukrainian metallurgical industry, as they exacerbate the shortage of this raw material on the domestic market. In addition, this problem is compounded by the fact that during the war, the area suitable for scrap collection is shrinking.
Previously, large metallurgical plants most often compensated for the shortage of scrap mainly by increasing the consumption of pig iron during steel smelting. However, due to the shutdown of the Pokrovsk coal mining group and the increase in coking coal imports, replacing scrap with pig iron has become economically unfeasible in converter steel production.
According to Makarenko, at the same time, the importance of scrap as a raw material for decarbonization of industry is growing. The electrometallurgical method of steel smelting is becoming the most efficient and popular for the manufacture of metal products and their subsequent sale on European markets in order to minimize the impact of the “carbon” tax. Recognizing this trend, the European Union is resorting to various regulatory measures that allow ferrous metal scrap to remain within the bloc, and local steel mills have the raw materials to produce steel in the most economical and environmentally friendly way.
“Today, I don’t see any other effective mechanisms for stabilizing the market and reducing scrap exports, except for an administrative ban on the export of this strategic raw material outside Ukraine at the state level,” the chairman of the board summed up.
For more information on the largest steel producers and global industry trends, see the Experts Club video analysis review available on YouTube: Experts Club — Leaders of the global steel industry 1990–2024
