Ukraine has maintained growth in steel production in early 2025, despite the suspension of operations at the country’s only coking coal mine in Pokrovsk due to security concerns.
Ukrainian steelmaker Metinvest halted operations as Russian forces advanced, impacting the supply of the key ingredient for steel production, reported Reuters, citing sources.
Data from the Ukrainian steel producers’ union showed a 9.9% increase in raw steel output to 1.18 million tonnes (mt) during the first two months of 2025.
This growth comes despite challenges faced since Russia’s invasion on 24 February 2022, which led to the destruction of leading steel plants in Ukraine.
Ukraine, once a major steel producer and exporter, saw a 70.7% drop in output in 2022 to 6.3mt, further declining to 6mt in 2023. However, production rebounded to 7.58mt in 2024.
The potential closure of the Pokrovsk mine could reduce steel output to 2–3mt in 2025, according to the steelmakers’ union.
Producers are exploring alternative sources of coking coal within Ukraine, but imports may be necessary, potentially increasing costs.
Meanwhile, the US and Ukraine have reached a draft minerals deal, potentially impacting both nations’ economies and geopolitical relations.
The agreement, central to Ukraine’s efforts to gain US support, does not include US security guarantees or commitments to weapon supplies.
According to the proposed agreement, a Reconstruction Investment Fund will be set up to reinvest the income generated from Ukrainian minerals, hydrocarbons and other extractable resources.
Ukraine’s deposits of vital minerals such as graphite represent 20% of the world’s resources and could play a crucial role in the production of electric vehicle batteries and nuclear reactors.
