Steel production in Ukraine fell by 57% over the past year
In August 2026, Ukrainian steelmakers reduced steel production by 57.3% year-over-year—to 277,000 metric tons. This is one of the lowest figures recorded since the start of the full-scale war. The Ukrainian steel industry posted a worse result only in 2022.
The trend in pig iron production was even worse. In August, it fell by 65.6% year-over-year to 257,100 metric tons. By July, the decline had reached 40.5%.
Production of commercial rolled metal decreased by 57.4% year-over-year and by 29.6% compared to the previous month, to 269.5 thousand metric tons.
Based on the results for January–August, the decline appears less sharp so far, but it is still significant. Steel production fell by 12.5% to 4.3 million metric tons, pig iron by 14.8% to 4.35 million metric tons, and rolled steel by 15.6% to 3.59 million metric tons.
The key reason for the sharp collapse in August was the shutdown of the largest steel mills following Russian attacks.
In August, Zaporizhstal completely halted operations following missile strikes on August 11 and 27. Before the shutdown, the plant managed to produce 46,200 metric tons of steel in August.
In early September, Kametstal in Kamenskoye also came under Russian attack. Following the strike, the plant also completely halted production.
The industry’s problems are not limited to direct shelling. The Ukrainian mining and metals sector is simultaneously facing a de facto blockade of seaports, the implementation of the CBAM, and new EU quotas on steel imports.
Andriy Tarasenko, chief analyst at GMK Center, notes that in August, Ukraine recorded one of the lowest steel production figures since the start of the war.
“The only months worse were April and December 2022. In the first half of the month, production volumes were affected by the maritime blockade and import restrictions on shipments to the EU. But in the second half of August, the country’s two largest steel producers halted operations as a result of direct Russian attacks,” he said.
According to his assessment, the situation could deteriorate even further in September.
This means that the steel industry is entering a new phase of the crisis: production capacity, export capabilities, and access to key markets are all declining simultaneously. If the shutdowns of major enterprises drag on, the drop in production could intensify as early as next month.
As is well known, the steel industry is one of Ukraine’s main export sectors, accounting for more than 8% of GDP. Over the past five years, the largest steel enterprises have paid more than 200 billion UAH, or $6.2 billion, in taxes and fees. By the end of 2024, tax and fee payments from four steel companies accounted for 1.6% of revenue collected by budgets at all levels. Without urgent government action, Ukraine risks losing this industry.
In August, Ukraine cut steel production by 57.3% year-over-year.
Over the first eight months, the figure fell by 12.5%
This was reported by the GMK Center.
Alona Shevtsova, CEO of Sends, will moderate a panel discussion at the executive level at the 17th Middle East Banking Innovation Summit (MEBIS 2026), which will take place on September 16–17 at Jumeirah Emirates Towers in Dubai.
The EU will nearly halve steel quotas — FT.
As a reminder, the U.S. and China have agreed to mutually reduce tariffs
As a reminder, Trump arrived in China for the first time in nearly ten years.
Donald Trump is heading to China for talks with Xi Jinping, where the two sides plan to discuss trade, energy, and Taiwan, against the backdrop of a tense global situation.
