ArcelorMittal Kryvyi Rih, Ukraine’s largest steel producer, reported a significant increase in raw steel output, rising nearly 70% to 1.65 million metric tons in 2024. This surge, however, remains substantially below the company’s pre-war production capacity.
Key Highlights:
Production Increase:
The company did not specify the reasons for the output rise, but the Ukrainian steel producers’ union indicated that a combination of increased domestic and foreign demand, along with the reopening of Black Sea ports for exports, contributed to the boost.
Historical Context:
In 2021, prior to Russia’s invasion in February 2022, ArcelorMittal Kryvyi Rih produced 4.9 million tons of steel. The current output still falls short of pre-war levels.
National Steel Production:
Ukraine’s overall steel production increased by 21.6% to 7.58 million tons last year, although this remains significantly lower than the pre-war range of 20-21 million tons. Production plummeted to 6.3 million tons in 2022 and 6 million tons in 2023 due to the war’s impact on infrastructure.
Ongoing Challenges:
The steel industry faces renewed threats as fighting approaches Ukraine’s only coking coal mine, which could jeopardize steel production again this year.
Financial Struggles:
Despite the production increase, ArcelorMittal Kryvyi Rih reported difficulties in breaking even due to persistent challenges such as power shortages, high electricity costs, and unfavorable metals prices.
In 2024, the plant also produced 2.17 million tons of pig iron and 1.53 million tons of rolled steel.
CEO’s Statement:
Mauro Longobardo, CEO of ArcelorMittal Kryvyi Rih, emphasized that the company’s business plan prioritizes survival, stating, “We are very cautious in our forecasts and understand that our results are far from pre-war levels.”
Impact of Mine Closures:
Ukraine’s Metinvest metallurgical giant recently suspended operations at its coking coal mine in eastern Ukraine due to worsening security conditions. The steelmakers’ union warned that the potential closure of the Pokrovsk mine could lead to a drastic reduction in steel production to 2-3 million metric tons by 2025, significantly affecting Ukraine’s steel exports, which generated approximately $4.4 billion last year.