Ukrainian steel and mining group Metinvest intends to increase steel production in 2026 by approximately 300,000-500,000 mt, according to Ivan Kovalevskyi, CEO of Metinvest-Resource. The planned increase is expected to be supported in part by higher scrap utilization, with the Ukrainian domestic market remaining the group’s primary source of supply.
Mr. Kovalevskyi said that, while scrap imports may be considered depending on market conditions, Metinvest will continue to prioritize maximizing domestic scrap availability to supply its metallurgical assets.
Scrap market expected to remain tight
Kovalevskyi stated that scrap prices are shaped by prevailing market dynamics, including seasonal factors, and therefore remain volatile. Looking ahead, he said he expects scrap supply constraints to persist throughout 2026, maintaining tight market conditions.
Scrap consumption at Metinvest’s plants is determined by the production programs of individual facilities. However, in recent years, limited scrap availability has frequently forced adjustments to output plans, reductions in production volumes, or increased reliance on pig iron. These constraints have also disrupted technological processes at several plants.
Focus on securing stable scrap supply
As a result of ongoing supply pressures, Metinvest’s enterprises are seeking to secure stable access to larger volumes of high-quality scrap. This is seen as essential not only for meeting current production needs but also for building sufficient operational inventories to ensure continuity during periods of heightened risk or force majeure.
Scrap remains a critical raw material for Metinvest’s key steelmaking assets, including Kamet Steel and the Zaporizhstal joint venture, and is required for the production of every metric ton of steel.
War-related disruptions weigh on scrap availability
Kovalevskyi highlighted that the war has significantly reduced Ukraine’s effective scrap collection base. Some territories remain outside government control, while others are contaminated by mines or unexploded ordnance or are subject to ongoing shelling, making scrap recovery impossible. In addition, Ukraine has lost access to several highly industrialized regions that previously supplied a substantial share of domestic scrap.
EAF transition hinges on state policy
Looking further ahead, Kovalevskyi said Metinvest is assessing strategic options for modernizing its metallurgical capacities in line with global and EU-driven decarbonisation objectives. One of the most promising pathways under consideration is a gradual transition toward electric arc furnace steelmaking, involving the installation of EAF capacity with annual output of around 3.5-3.8 million mt.
Such a shift would significantly increase scrap demand compared with basic oxygen furnace technology. Kovalevskyi cautioned that, without a clear state policy aimed at limiting scrap exports and prioritizing domestic processing, the development of new EAF capacity in Ukraine would be difficult to realize, as large volumes of scrap diverted from the local market would undermine the feasibility of long-term investments.
