The steel and metal products market in Ukraine in the first quarter of 2025 shows mixed trends, with increases in production and domestic consumption coupled with a slowdown in exports. According to industry analysts, major enterprises in the metallurgical sector have increased pig iron production and steel output, but are facing external challenges such as trade restrictions and logistical difficulties.
This is reported by Business • Media
Main Indicators and Factors Influencing the Steel Market
During the period from January to March 2025, Ukrainian metallurgical enterprises increased pig iron production by 7.2% compared to the same period last year, reaching 1.7 million tons. Steel production rose by 2.7% to 1.73 million tons, while rolled metal increased by 3.4% to 1.43 million tons. However, compared to the previous quarter, pig iron production decreased by 1.8%, while steel and rolled metal production grew by 2.5%. This indicates some slowdown, as the average quarterly volumes from last year were higher—pig iron averaged 1.77 million tons, steel 1.89 million tons, and rolled metal 1.55 million tons.
Positive results were achieved in the second and third quarters of last year when pig iron and steel production exceeded or approached 2 million tons, and finished product volumes reached 1.7 million tons. At the same time, external factors are actively impacting the industry: the U.S. trade policy with new tariffs and anti-dumping investigations restricts access for Ukrainian products to the American market and affects the pricing situation in Europe and Asia.
“We are seeing the beginning of negative trends due to internal and external factors affecting the Ukrainian mining and metallurgical complex,” noted Stanislav Zinchenko, director of GMK Center.
Logistical difficulties are also increasing, particularly with rising transportation tariffs, and competition from Asian manufacturers is intensifying.
Dynamics of Domestic and External Consumption of Metal Products
Domestic consumption of steel (semi-finished products, rolled metal) in the first quarter of 2025 increased by 40.5% compared to the same period last year, totaling 849.92 thousand tons. Of this, 317.9 thousand tons were imported, which is 35.9% more than last year. In particular, imports of long products amounted to 49.7 thousand tons (+92.7%), while flat products reached 268.25 thousand tons (+28.8%). Although supply volumes increased, the share of imported products decreased by 1.28 percentage points compared to the first quarter of 2024.
Exports of metal products during this period decreased by 11.2% compared to last year but increased by 7.1% compared to the previous quarter, reaching 903.53 thousand tons. The main reason for the decline is the slowdown in demand for export semi-finished products, particularly down 34.8% year-on-year to 294.2 thousand tons. At the same time, shipments of long products increased by 19.6% year-on-year, reaching 176.25 thousand tons, while flat product volumes rose by 3.3% to 433.1 thousand tons.
Significant export positions are held by flat hot-rolled products (UKTVED code – 7208), totaling 357.83 thousand tons, as well as semi-finished products (UKTVED code – 7207) at 294.2 thousand tons and flat cold-rolled products (UKTVED code – 7209) at 58.45 thousand tons. The largest imports were of flat coated products (UKTVED code – 7210) at 110.79 thousand tons, hot-rolled at 98.97 thousand tons, cold-rolled at 32.87 thousand tons, and square and other profiles at 26.88 thousand tons.
The volume of pipes exported in the first quarter amounted to 136.23 thousand tons (+12.8% year-on-year), while imports stood at 20.89 thousand tons (+67.3% year-on-year). The main markets for Ukrainian metal products are the countries of the European Union (77.9%), other Europe (10.9%), and the CIS countries (6.7%). The most active import flows come from European countries (59.4%), followed by the EU (23.2%) and Asian countries (16.9%).