The market for metal products for machine engineering in Ukraine is undergoing significant changes and demonstrating positive dynamics, particularly in the context of the defense industry. Although production volumes in this segment are smaller compared to the construction assortment, their importance for the country is hard to overestimate, as the military-industrial sector is the main driver of growth.
This is reported by Бізнес • Медіа
Trends and Current State of the Metal Products Market
Since 2023, demand for metal products for machine engineering in the Ukrainian market has been gradually recovering. According to last year’s results, sales volumes increased by 25-30%, and the company “TAKT Metal” increased its sales by 20-25% in 2024. In certain segments, the growth is even higher: for example, sales of calibrated rolled products made from structural alloy steel increased by 45%. In terms of consumption structure, over 80% of the metal is used for producing round bars, 10% for hexagonal profiles, and 5% each for squares and strips.
Metal rolling for machine engineering is used either for hot processing—at forging enterprises for forging parts—or for cold mechanical processing—on automated lathes for producing assemblies and mechanisms. Compared to hot processing, the share of cold processing is growing faster, which is related to the active renewal of equipment. These programs are funded both by the state and through international grants.
Production Volumes and Logistics
According to experts’ estimates, in 2024, the volume of the Ukrainian market for metal products for machine engineering is about 140-145 thousand tons. Imports outweigh domestic production: Ukrainian manufacturers supply special grades of steel in quantities of 55-60 thousand tons, while imports in this segment amount to approximately 85 thousand tons.
“The volume of imports is influenced by logistics. Due to the ban on receiving containers in Ukrainian ports and high costs for road transportation, Ukrainian companies are forced to use European ports, which increases the cost and delivery times.”
Transport companies also face complex logistics, as due to mobilization and staffing difficulties, they have limited capabilities for delivering products to frontline regions—Kharkiv, Zaporizhzhia, Sumy, Dnipro, Kherson. This negatively affects pricing policies and delivery times.
Main Drivers and Development Prospects
The main driver of demand growth for metal in machine engineering remains the defense industry. Many enterprises are working on implementing new technologies, and joint ventures and investment projects with foreign companies are emerging. Among the key trends are tight delivery times, which is especially important for the repair of military equipment, as well as the active renewal of equipment fleets through international grants and support programs.
A significant portion of Ukrainian production is concentrated in distributed manufacturing capacities, complicating the full-scale development of the sector. At the same time, there is an increase in imports of complex steel products, particularly from China, Europe, and Turkey, which are necessary for modern technological processes.
By the end of the first quarter of 2025, a sales increase of 10-12% for metal products is already being observed. It is expected that the market will grow by at least 15% in 2025, opening up significant opportunities for the recovery and development of Ukrainian machine engineering. In particular, the potential of the Ukrainian defense industry is estimated at $35 billion per year, while current production stands at approximately $14 billion.
Restructuring infrastructure, restoring wagon fleets, and modernizing the energy sector are key areas that will contribute to further development of the industry. Equally important is the support for domestic manufacturers and the activation of exports, particularly in the agricultural sector, which will help unlock new potential for Ukrainian machine engineering.