At the Forbes Industrial Forum in Kyiv, Oleksandr Mironenko, COO of Ukrainian mining and steel producing group Metinvest, has outlined the key challenges facing Ukraine’s steel industry as it navigates war-related disruptions, rising scrap exports, and the looming impact of the EU’s Carbon Border Adjustment Mechanism (CBAM). While production has partly recovered, Mironenko warned that, without timely support and protective measures, the sector’s competitiveness and recovery remain at risk.
CBAM - an additional burden on Ukrainian steel
The EU’s CBAM, set to take effect in January 2026, poses a significant challenge for Ukrainian producers.
Mironenko stressed that CBAM will impose additional duties on Ukrainian steel exports, eroding price competitiveness. Metinvest is lobbying for a postponement to allow time for post-war recovery and modernization in line with EU green standards.
Another CBAM-related risk is the loss of preferential access to EU markets, which could expose Ukraine to increased imports. In particular, Ukraine will become one of the most attractive markets for Turkish rolled steel producers, leading to a significant influx of Turkish products.
Scrap exports post a serious domestic challenge
Another pressing issue is the surge in scrap metal exports. Export volumes have risen from 4,000 mt per month at the start of the war to the current 50,000 mt per month, resulting in a loss of $800-900/mt in foreign currency earnings that could stay in Ukraine if scrap were processed domestically.
Mironenko stressed that retaining scrap for domestic steelmaking is crucial for strengthening the Ukrainian economy and protecting industrial jobs.
Additional industry challenges
Beyond CBAM and scrap exports, Ukrainian steelmakers face:
- High tariffs imposed by state monopolies.
- A labor shortage of 15-20 percent, covered with overtime, weekend shifts, and contractors.
- Mobilization pressures limiting workforce availability and expansion capacity.
Production and investments
Despite difficulties, Metinvest’s operations show resilience. According to the Metinvest official, the company’s steel plants are operating at 75 percent of the pre-war capacity. Three of four of its mining plants are at 100 percent capacity, while Inhulets iron ore processing plant remains offline due to high electricity tariffs. Restarting could add 12 million mt of iron ore annually and restore 2,000 jobs in Kryvyi Rih.
There are also ongoing investments, including $20 million for blast furnace repairs at Kametstal and the construction of a waste thickening unit at the Northern GOK mining and processing plant. For next year, the company is also planning a larger investment program, dependent on external financing.
Long-term green steel vision
Looking ahead, Mironenko confirmed that Metinvest plans to retool its steelmaking assets for green steel production after the war. This strategy aligns with EU decarbonization policies and aims to secure Ukraine’s role in the future green steel market.