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
In November of this year, Ukrainian metallurgical companies increased steel production by 18.5% compared to the same period last year, from 541,000 tons to 641,000 tons, but decreased by 1.1% compared to the previous month (648,000 tons).
In the ranking of global producers of this product, compiled by the World Steel Association (Worldsteel), Ukraine ranked 20th among 70 countries.
According to Worldsteel, in November 2025, there was a decrease in steel production compared to November 2024 in half of the top ten countries, except for India, the US, Turkey, Iran, and Brazil.
The top ten steel-producing countries in November were as follows: China – 69.870 million tons (down 10.9% from November 2024), India – 13.713 million tons (up 10.8%), the US – 6.8 million tons (+8.5%), Japan – 6.774 million tons (-1.6%), Russia – 5.190 million tons (-6.6%), South Korea – 4.965 million tons (-4.8%), Iran – 3.356 million tons (+9.2%), Turkey – 3.312 million tons (+10%), Germany – 2.841 million tons (-2.6%), and Brazil – 2.8 million tons (+0.7%).
Overall, steel production in November this year decreased by 4.6% compared to the same period last year, to 140.130 million tons.
Based on the results of the first 11 months of this year, the top ten steel-producing countries are as follows: China – 891.670 million tons (-4% compared to January-November 2024), India – 150.062 million tons (+10.3%), the US – 75.103 million tons (+3.2%), Japan – 74.102 million tons (-3.9%), Russia – 61.774 million tons (-5%), South Korea – 56.109 million tons (-3.7%), Turkey – 34.589 million tons (+2%), Germany – 31.346 million tons (-9.3%), Brazil – 30.788 million tons (-1.5%), and Iran – 28.798 million tons (+0.1%).
Over the first 11 months of this year, Ukrainian steel companies reduced steel production by 3.1% compared to the same period last year, from 7.028 million tons to 6.813 million tons. The country ranked 21st.
Overall, global steel production in January-November 2025 decreased by 2% compared to the same period in 2024, to 1 billion 662.222 million tons.
As reported, at the end of 2024, the top ten steel-producing countries among 71 countries were as follows: China – 1 billion 5.090 million tons (-1.7%), India – 149.587 million tons (+6.3%), Japan – 84.009 million tons (-3.4%), the US – 79.452 million tons (-2.4%), Russia – 70.690 million tons (-7%), South Korea – 63.531 million tons (-4.7%), Germany – 37.234 million tons (+5.2%), Turkey – 36.893 million tons (+9.4%), Brazil – 33.741 million tons (+5.3%), and Iran – 30.952 million tons (+0.8%).
In total, 71 countries produced 1 billion 839.449 million tons of steel last year, which is 0.9% less than in 2023.
At the same time, Ukraine produced 7.575 million tons of steel in 2024, which is 21.6% higher than in 2023 (6.228 million tons). The country ranked 20th in 2024.
In 2023, China produced 1 billion 19.080 million tons (at the level of the previous year), India – 140.171 million tons (+11.8%), Japan – 86.996 million tons (-2.5%), the US – 80.664 million tons (+0.2%), Russia – 75.8 million tons (+5.6%), South Korea – 66.676 million tons (+1.3%), Germany – 35.438 million tons (-3.9%), Turkey – 33.714 million tons (-4%), Brazil – 31.869 million tons (-6.5%), and Iran – 31.139 million tons (+1.8%). In total, 71 countries produced 1 billion 849.734 million tons of steel in 2023, which is 0.1% less than in 2022.
At the same time, Ukraine produced 6.228 million tons of steel in 2023, which is 0.6% less than in 2022. The country ranked 22nd in 2023.
At the end of 2022, the top ten steel-producing countries were as follows: China – 1.013 billion tons (-2.1%), India – 124.720 million tons (+5.5%), Japan – 89.235 million tons (-7.4%), the US – 80.715 million tons (-5.9%), Russia – 71.5 million tons (-7.2%), South Korea – 65.865 million tons (-6.5%), Germany – 36.849 million tons (-8.4%), Turkey – 35.134 million tons (-12.9%), Brazil – 33.972 million tons (-5.8%), and Iran – 30.593 million tons (+8%).
Ukraine ranked 23rd in 2022 with 6.263 million tons of steel (-70.7%).
In total, 64 countries produced 1 billion 831.467 million tons of steel in 2022, which is 4.3% less than in 2021.
Earlier, the Experts Club analytical center released a video analysis of the world’s leading steel producers from 2001 to 2024 – https://youtube.com/shorts/VgUU9MEMosE?si=c5yD04gmNtJoFblB
Ukrainian metallurgical enterprises increased pig iron production by 10.2% in January-November this year compared to the same period last year, reaching 7.188 million tons.
According to the Ukrmetallurgprom association, 704,300 tons of pig iron were produced in November, which is an increase compared to October.
PJSC Dnipro Metallurgical Plant (DMZ), part of DCH Steel, a group owned by businessman Oleksandr Yaroslavskyi, has completed its transition to continuous casting and has begun developing a new type of rolled product
According to information in the DCH Steel corporate newspaper, during the production campaign in November, 6,400 tons of products were manufactured in rolling mill No. 2.
It is specified that the rolling campaign lasted from November 12 to 22 without days off and was carried out in a very intense mode. Due to a decrease in orders, the shop worked on a two-shift schedule for the first time—it was necessary to manufacture a wide range of products and conduct important experiments. Constant air raid alerts and the risk of power outages complicated the work.
“It was one of the most intense campaigns in recent years. The workshop team was well prepared and successfully coped with the production tasks. They worked even faster than planned and did not allow significant overspending of energy resources,” said Yuriy Mikhailiv, Deputy General Director for Production and Technology.
According to him, during the campaign, a standard selection of channels from 14 to 30 was produced. In addition, 1,400 tons of channels were rolled according to European standards, as well as small volumes of 125 angles and SVP-22 mine props. Deliveries of billets to DMZ began two weeks before the start of production.
U100, U120, U140, and U160 channels were manufactured for the European market. Testing of rolls continued, a small batch of which the company purchased abroad in the summer. Based on the test results, the company plans to continue cooperation with the new supplier.
The shop also began mastering the production of Ø60 circles.
“The design of the 550 mill differs from those on which circles are usually manufactured. However, the experiment showed that the shop has the potential to produce this profile. We ran several blanks through the mill line and identified technical issues that need to be worked on. We will move forward step by step,” said Mikhailov.
The next production campaign in rolling shop No. 2 is planned for February.
As reported, DMZ reduced its rolled steel production by 23.1% in the first seven months of 2025 compared to the same period last year, to 26,000 tons.
In 2024, DMZ reduced rolled steel production by 59.4% compared to 2023, to 42.9 thousand tons, and coke production by 1.2%, to 289.1 thousand tons.
In 2023, DMZ increased its production of rolled metal by 86.2% compared to 2022, to 105,600 tons, and coke by 38.5%, to 292,700 tons.
In 2022, the plant reduced its production of rolled products by 74.2% compared to 2021, to 58.4 thousand tons, and coke by 56.3%, to 211.3 thousand tons.
DMZ specializes in the production of steel, cast iron, rolled products, and products made from them.
On March 1, 2018, the DCH Group signed an agreement to purchase the Dnipro Metallurgical Plant from Evraz.
According to preliminary data, Ukrainian metallurgical enterprises increased their total rolled steel production in January-October of this year by 0.5% compared to the same period last year, from 5.264 million tons to 5.377 million tons.
According to information from the Ukrmetallurgprom association, steel production during this period decreased by 4.9% to 6.172 million tons, but pig iron production increased by 8.4% to 6.484 million tons.
In October, 534,000 tons of rolled products, 649,000 tons of steel, and 692,000 tons of pig iron were produced, while in the previous month, 587,500 tons of rolled products, 611,000 tons of steel, and 683,200 tons of pig iron were produced.
As reported, 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. Steel smelting during this period increased by 21.6% to 7.575 million tons, and pig iron by 18.1% to 7.090 million tons.
In 2023, Ukraine increased its total rolled steel production by 0.4% compared to 2022, to 5.372 million tons, but reduced its steel production by 0.6%, to 6.228 million tons, and its pig iron production by 6.1%, to 6.003 million tons.
In 2022, the country reduced its production of total rolled steel by 72% compared to 2021, to 5.350 million tons, steel by 70.7%, to 6.263 million tons, and pig iron by 69.8%, to 6.391 million tons.
In pre-war 2021, 21.165 million tons of pig iron (103.6% compared to 2020), 21.366 million tons of steel (103.6%), and 19.079 million tons of rolled products (103.5%) were produced.
In January-September of this year, Ukrainian enterprises increased their consumption of rolled metal products by 39.49% compared to the same period last year, to 3 million 164.5 thousand tons.
According to a press release from the Ukrmetallurgprom association, 1 million 239.5 thousand tons, or 37.17% of the domestic market for rolled metal consumption, were imported during this period.
According to Ukrmetallurgprom, in the first nine months of 2025, metal companies produced 4.843 million tons of rolled metal (100.4% compared to the same period in 2024), of which, according to the State Customs Service of Ukraine, 2.918 million tons, or 60.3%, were exported. In January-September 2024, the share of exports was 68.9% (3.323 million tons with a total production of rolled metal products of 4.821 million tons).
The share of semi-finished products in export deliveries in January-September 2025 is 32.59%, which is significantly lower than in January-September 2024 (46.98%). The share of flat products in export deliveries in January-September 2025 significantly exceeds the figure for January-September 2024 (44.24% and 39.00%, respectively). The share of long products is also significantly higher than in January-September 2024 (23.17% in 2025 versus 14.02% in 2024).
The structure of imports in January-September 2025 continues to be characterized by the significant dominance of flat rolled products over long products (67.14% and 21.28%, respectively); in January-September 2024, the dominance of flat rolled products over long products was also significant (79.37% and 19.19%, respectively).
“In the first nine months of 2025, the domestic market capacity was 3,164,500 tons of rolled metal, of which 1,239,500 tons, or 39.17%, were imports. In January-September 2024, the domestic market capacity was 2,425,100 tons, of which 927,100 tons, or 38.23%, were imported. Thus, in January-September 2025, there was a 39.49% increase in the capacity of the domestic market compared to January-September 2024, with a simultaneous increase in the share of imports by 0.94%,” the press release states.
According to the State Customs Service, the main export markets for Ukrainian rolled metal products in the first nine months of this year were the European Union (79.9%), other European countries (8.9%), and the CIS (6.2%).
Among metallurgical importers in January-September 2025, other European countries ranked first (50.3%), followed by the EU-27 (22.5%) and Asian countries (20.7%).
As reported, Ukraine’s rolled metal market in 2024 shrank by 6.26% compared to the previous year, to 3 million 288.4 thousand tons, while in 2023 it increased 2.19 times compared to 2022, to 3 million 505.6 thousand tons.
