Ukrainian steel producers have reported significant increases in both rolled steel production and exports in 2024, according to the local steel producers’ union, Ukrmetprom.
Production and Export Figures:
Rolled steel output has risen by 20.6% from January to October 2024, reaching 5.3 million metric tons, compared to 4.4 million tons during the same period last year.
Exports of rolled steel have surged by 53.5%, increasing from 2.4 million tons to 3.7 million tons.
Context of Production Challenges:
Despite being a major global steel maker and exporter, Ukraine’s steel production has significantly declined since Russia’s full-scale invasion in 2022, resulting in the loss of several key steel plants in the eastern region of the country.
The ongoing conflict poses additional risks, particularly regarding the Pokrovsk mine, the only domestic source of coking coal essential for steel production. Russian troops are reportedly located just a few kilometers from the mine, which currently employs 3,400 workers and operates continuously.
Potential Impact of Mine Loss:
Oleksandr Kalenkov, head of Ukrmetprom, warned that the loss of the Pokrovsk mine could drastically reduce steel production to between 2-3 million tons annually, down from the 7.5 million tons projected for 2024.
Economic Significance:
In the first eight months of 2024, metal exports generated nearly $2 billion, crucial for sustaining Ukraine’s economy as the war continues into its third year. Steel and agricultural products remain the mainstays of Ukrainian exports.