Ukraine has managed to achieve a 9.9% increase in raw steel production during the first two months of 2025, reaching 1.18 million metric tons, according to data released by the Ukrainian steel producers’ union on Saturday. This growth comes despite the suspension of operations at the country’s key coking coal mine in Pokrovsk, located in the eastern region, due to escalating security concerns as Russian forces advance.
The suspension of the Pokrovsk mine, operated by Ukrainian steelmaker Metinvest, has raised fears of a significant decline in steel output. The mine, which supplies a critical ingredient for steel production, has been a cornerstone of Ukraine’s industrial sector. The steelmakers’ union had previously warned that the potential closure of the mine could slash production to 2-3 million metric tons in 2025.
Despite these challenges, Ukraine’s steel industry has shown resilience. The country, once a major global steel producer and exporter, saw its output plummet by 70.7% in 2022 to 6.3 million tonsfollowing Russia’s invasion. Production slightly declined to 6 million tons in 2023 but rebounded to 7.58 million tons in 2024.
Producers are now exploring alternatives to sustain output, including sourcing coking coal from other domestic locations and relying on imports, though the latter option is expected to drive up costs. The ongoing conflict continues to pose significant risks to Ukraine’s industrial infrastructure, with several major steel plants already destroyed since the war began in February 2022.
