Ukraine's Steel Industry: Export Surge Amid Domestic Decline in 2024
Ukraine's steel industry had a strong performance in 2024, with significant increases in exports despite challenges in the domestic market. The data released by the Ukrainian Steel Association, Ukrmetallurgprom, showed notable growth in steel exports, with both flat steel and semi-finished steel exports reaching new heights. However, the country faced a drop in domestic steel consumption, indicating shifting dynamics in its steel industry.
Steel Exports: A Year of Strong Growth
In 2024, Ukraine's flat steel exports surged by 36.0%, reaching 1.64 million metric tons (mt), compared to the previous year. This boost reflects the growing demand for Ukrainian flat steel, particularly in key international markets. Flat steel products are integral to industries like automotive, construction, and manufacturing, and the demand for these goods has been rising globally.
Similarly, Ukraine's semi-finished steel exports experienced impressive growth, increasing by 53.0% year on year to reach 1.92 million metric tons. Semi-finished steel, which is used as a base material for manufacturing more complex products, is a crucial part of global steel trade. This increase highlights Ukraine's strong position in the semi-finished steel market, driven by competitive prices and quality production.
Additionally, the country's section exports, comprising long steel products such as bars and beams, rose by 16.3%, reaching 614,000 metric tons in 2024. This growth reflects a steady demand for sections, which are used in construction and infrastructure projects, both regionally and internationally.
Domestic Consumption: Declining Trends and Increased Imports
Despite the positive performance in exports, Ukraine's domestic steel consumption showed a decline in 2024. The country consumed 3.29 million metric tons of steel, a decrease of 6.3% compared to 2023. This decline may be attributed to factors such as reduced local manufacturing demand, economic challenges, and shifts in industrial production.
As a result of the drop in domestic consumption, Ukraine's reliance on steel imports has risen. The country imported 983,500 metric tons of flat steel in 2024, an 8.3% increase from the previous year. This growth in imports indicates that the domestic steel industry could not fully meet its internal demand, resulting in higher reliance on foreign suppliers.
Section imports also saw a notable rise, increasing by 14.9% to 232,600 metric tons in 2024. These imports were likely driven by the demand for specific steel products that were not produced domestically or due to cost advantages in sourcing from other countries.
Steel Exports by Region: Key Markets and Export Destinations
Ukraine's steel export markets were dominated by the European Union, which absorbed 70.7% of the country's steel exports. The EU remains a primary destination for Ukrainian steel, thanks to its proximity, established trade agreements, and strong industrial demand. Africa was the second-largest export market, with a 10.1% share of total exports. Other European countries followed, accounting for 8.3% of Ukraine's steel exports.
On the import side, Ukraine's main suppliers were other European countries, which provided 51.8% of the steel imports in 2024. The EU-27 accounted for 27.7% of steel imports, while Asian countries contributed 19.2%. The import patterns suggest that Ukraine continues to rely on its regional trading partners for steel products, but Asia's share highlights the growing role of international markets in the supply chain.
Semi-Finished Steel Exports: Growing Markets
In terms of semi-finished steel, Ukraine's exports in 2024 amounted to 19,300 metric tons, a significant increase from the 10,300 metric tons in 2023. This growth is indicative of stronger demand for semi-finished steel, especially in markets that require raw materials for further processing. Ukraine's ability to expand its presence in this segment adds to its reputation as a key global player in the steel industry.
