After the war, Ukraine will face a substantial demand for steel, which is needed for the restoration of infrastructure and housing construction. However, the market will also encounter a number of challenges, including competition from foreign suppliers, the need to attract investments, and the restoration of production, according to experts from the mining and metallurgy group “Metinvest”.
This is reported by Business • Media
Steel Consumption Potential in Ukraine
Analysts believe that the potential for steel consumption in Ukraine after the war could reach 300-600 kg per capita. This figure varies depending on the pace of infrastructure and housing recovery. In addition to the construction sector, important areas will remain the automotive industry, as well as the production of equipment and machinery.
Investments and Competition in the Market
Key factors that will contribute to attracting investments include stability and security guarantees. To meet the reconstruction needs, Ukraine needs either to increase the capacities of existing plants or to expand production capabilities by acquiring enterprises in the European market.
However, a serious problem remains the competition with imported products. The Ukrainian market is currently saturated with steel from the European Union and China. At the same time, imports of steel from Turkey are increasing, which, in turn, purchases metal products from Russia. This creates the risk of Russian metal entering Ukraine after being processed in Turkey.
“Metinvest” believes that finding optimal solutions to overcome the steel shortage is essential for successful recovery.