On February 24, Russia launched a wide-ranging military attack on Ukraine, hitting most of the country’s civil and military airports, military bases and strategic objects. Along with the direct threat to people’s lives, the country’s transportation and logistics systems are under threat, as well as major industries, including steel. Moreover, several mills have already issued statements indicating that they are suspending production or slowing down production significantly.
ArcelorMittal has announced that it has taken the decision to work on slowing down operations in Ukraine to a technical minimum and to halt production at its underground mines. The company’s asset in Kryviy Rih is one of the largest steel producers in Ukraine and one of the key exporters of steel billet and long products.
Interpipe group, a large pipe producer in Ukraine, has announced that it has decided to temporarily suspend its operations. The company has stopped production at its assets in the Dnipro region. “The operations will be restarted in line with the regular regime once it is clear how the logistics processes work in the country,” the official statement said. In the meantime, the company will continue meeting its salary obligations.
Metinvest has not yet made a comment regarding its production operations, only saying that its logistics operations are continuing in normal mode. However, steel market players do expect some disruptions in the company’s production operations, given that some of its main assets are located in the Mariupol area, which is currently under continuing attack from Russian troops.