Ukraine is becoming increasingly dependent on steel imports

Changes in the domestic steel market accelerated in the fall of 2026 following the shutdown of major steel mills. Ukraine, which produced more than 21 million metric tons of steel annually before the full-scale war and was a major exporter of steel, is gradually becoming dependent on imported supplies.

 

Due to Russian attacks, plants belonging to the Metinvest Group, ArcelorMittal Kryvyi Rih, and Interpipe were shut down. Domestic steel production has virtually ceased, and stocks of rebar and rolled steel have begun to dwindle.

According to Ukrmetallurgprom, the share of imports in domestic consumption rose from 22.6% in 2021 to 46.8% over the first three quarters of 2026. During this period, 84,000 metric tons of rebar were imported—nearly one and a half times more than a year earlier.

China and Turkey have become the main suppliers. Certain products have to be sourced from non-traditional markets: significant volumes of rebar arrived from Egypt in September, and wire rod for mesh began to be purchased from Moldova.

For now, the market is partially supported by warehouse inventories. Metinvest stated that, over the next month, it can meet about 95% of projected demand; however, shortages are already noticeable for certain items.

According to GMK Center’s estimates, the monthly shortage of the most common types of rolled steel already amounts to about 200,000 metric tons, while imports have not yet been able to compensate for it.

“Finding suppliers for such large shipments and delivering the metal by land while ports are blocked is a colossal challenge for the industry,” said Stanislav Zinchenko, director of the GMK Center.

Logistics are hindering a rapid increase in imports. The metal must be transported through ports in Romania and Bulgaria, and then by rail or truck. Delivery can take at least two months.

Rising domestic transportation costs are creating additional pressure. Ukrzaliznytsia’s 30% increase in freight rates in August raised the cost of production and imports.

Construction companies are already preparing for the new conditions. KAN Development stated that without imported rebar, construction could face serious constraints.

“Our reserves are dwindling, and without imports, construction will come to a halt. This is an entirely new situation for us—having to import basic steel products,” said Igor Nikonov, founder of KAN Development. According to his estimates, construction costs have risen by 30–35% in the past year alone, while rebar prices have increased by approximately 60%.

The main shift has already taken place: Ukraine is transforming from a major steel producer and exporter into an import-dependent market. For the construction industry, this means higher logistics costs, longer delivery times, and additional pressure on project costs.

Source: EP

Steel production in Ukraine has dropped to nearly zero due to a series of Russian attacks.

Ukraine’s largest steel mill, ArcelorMittal Kryvyi Rih, is beginning preparations to completely halt production and mothball its industrial facilities. Over the next two months, the company plans to safely shut down production and subsequently preserve equipment and other assets until operations can resume.

The Kametstal plant in Kamyanske, Dnipropetrovsk Oblast, completely halted production following a Russian ballistic missile strike on the night of September 5.