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Ukraine steel output capacity down 81% since Russian offensive began in 2014, union says

Published by Global Banking & Finance Review

Posted on March 24, 2026

2 min read

· Last updated: April 1, 2026

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Ukraine steel output capacity down 81% since Russian offensive began in 2014, union says
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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

Ukraine Steel Output Shrinks 81% Since 2014 as War and Crisis Hit Industry

Impact of War and Economic Crisis on Ukraine's Steel Industry

Decline in Steel Production Capacity

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.

Destruction and Occupation of Steel Plants

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 Exports and Economic Importance

Steel and metallurgical products were among the main components of Ukraine's exports, alongside iron ore and agricultural commodities.

Current Challenges Facing the Steel Industry

Production Constraints and Forecasts

"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.

Recent Output Statistics

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.

Year-on-Year Output Changes

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.

Major Steelworks and Plant Closures

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)

Key Takeaways

  • Ukraine’s nominal steelmaking capacity fell from around 42.5 million t in 2013 to 8 million t—a drop of approximately 81 %.
  • Annual steel output collapsed, falling 70.7 % to 6.3 Mt in 2022, recovering modestly to 7.58 Mt in 2024 and 7.41 Mt in 2025, but still far below pre‑war levels.
  • Key producers like ArcelorMittal Kryvyi Rih are cutting capacity—closing rolling mills and idling operations—due to energy shortages and EU environmental costs.

References

Frequently Asked Questions

How much has Ukraine's steel production capacity decreased since 2014?
Ukraine's nominal steel production capacity has fallen by 81%, from 42.5 million metric tons in 2013 to 8 million tons per year.
What are the primary reasons for the decline in Ukraine's steel output?
The main causes are destruction and occupation of steel plants during the war with Russia, electricity shortages, and higher fuel costs.
Which Ukrainian steel plant remains the largest?
ArcelorMittal Kryvyi Rih remains the largest steelworks in Ukraine.
How much did Ukrainian steel output drop in 2022?
Ukrainian steel output dropped by 70.7% in 2022, down to 6.3 million tons.
What export products, besides steel, are significant for Ukraine?
Besides steel, iron ore and agricultural commodities are main components of Ukraine's exports.

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