Published by Global Banking & Finance Review®
Posted on March 24, 2026
2 min readLast updated: March 24, 2026
Add as preferred source on GoogleUkraine’s steel production capacity has plunged by 81%, from 42.5 Mt in 2013 to just 8 Mt today; output remains severely depressed amid war, energy shortages and high costs, with modest gains offset by new challenges.
KYIV, March 24 (Reuters) - Ukraine's nominal steel production capacity has fallen to 8 million metric tons per year from 42.5 million tons in 2013, before Russia's occupation of eastern Ukrainian regions, the national steelmakers' union said on Tuesday.
After the collapse of the Soviet Union in 1991, Ukraine operated five large and several medium-sized steel plants, most of which have been either destroyed or occupied during the war with Russia.
Steel and metallurgical products were among the main components of Ukraine's exports, alongside iron ore and agricultural commodities.
"Amid the ongoing hostilities, electricity shortages, and rising fuel costs, monthly steel output in 2026 is unlikely to exceed 600,000 tons and is expected to remain below the peak levels of previous years," Ukrainian GMK Center consultancy said in a report.
The union said this month that Ukrainian steel output fell 13.2% on the year in the first two months to 1.03 million tons.
Ukraine, formerly a leading steel producer and exporter, reported a 70.7% drop in output in 2022 to 6.3 million tons. Output fell to 6 million tons in 2023, reached 7.58 million tons in 2024 and decreased to 7.41 million tons in 2025.
The largest remaining steelworks, ArcelorMittal Kryvyi Rih, said this month it would close two rolling mills citing the energy crisis caused by Russian strikes and the cost of European Union environmental requirements.
(Reporting by Pavel Polityuk)
Ukraine's nominal steel production capacity has fallen by 81%, from 42.5 million metric tons in 2013 to 8 million tons per year.
The main causes are destruction and occupation of steel plants during the war with Russia, electricity shortages, and higher fuel costs.
ArcelorMittal Kryvyi Rih remains the largest steelworks in Ukraine.
Ukrainian steel output dropped by 70.7% in 2022, down to 6.3 million tons.
Besides steel, iron ore and agricultural commodities are main components of Ukraine's exports.
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