Steel production in Ukraine is falling, while exports of scrap and pig iron are growing: how the structure of the steel industry is changing
23 December 19:25
In 2025, Ukraine will see a decline in steel production, while exports of metallurgical raw materials and semi-finished products are growing, "Komersant Ukrainian" reports.
According to the Ukrainian Association of Secondary Metals (UAVtormet), steel production decreased by 3.1% over 11 months of the year, from 7.028 million tons in 2024 to 6.813 million tons in 2025. The main reason for this is the unstable operation of Interpipe Steel, which has been undergoing repair and restoration work for a long time.
Export and domestic market dynamics
Despite the decline in steel production, the supply of ferrous scrap to Ukrainian enterprises increased by 14% to 1.41 million tons. This is attributed to stockpiling before the winter period and an increase in exports of pig iron, which replaces some of the scrap in steel production.
Exports of scrap and pig iron are showing significant growth:
- Ferrous scrap: about 380.2 thousand tons, or 6.4% of steel exports;
- Pig iron: 1.59 million tons, up 49%;
- The share of metallurgical raw materials in the total exports of Ukraine’s mining and metals industry reached 37.5%, and steel semi-finished products – 20.7%.
At the same time, the raw material component of exports prevails, rather than products with a high degree of processing, which is typical for modern metallurgy.
Causes and consequences
According to Volodymyr Bublya, President of UVTORMET, scrap exports increased by 45% due to Interpipe Steel’s downtime, which created a surplus of over 600 thousand tons of raw materials.
At the same time, domestic scrap prices remain significantly lower than in the EU: 175-185 euros per tonne versus 300-330 euros per tonne in Europe, which stimulates sales abroad.
Experts warn that attempts to ban scrap exports could have a negative impact on the market, creating an artificial shortage and undermining the financial stability of related industries. Scrap is a private asset and an important source of working capital for the economy, so its regulation through administrative restrictions is criticized as harmful to the market.
Regulatory and industry initiatives
on June 2, 2025, a Memorandum was signed between scrap procurement companies and consumers of scrap with the participation of the Ministry of Economy, the Ministry of Defense, and Ukrzaliznytsia. The document provides for
- full coverage of scrap needs of the steel industry;
- balance of scrap production and consumption in accordance with the law;
- transparent algorithms for interaction between the two industries in wartime.
According to Bublai, this approach avoids artificial bans and administrative restrictions, maintaining a competitive and stable market for metallurgical raw materials.
