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| Hot dip galvanized rolled steel |
Turkish Suppliers Dominate as Coated Flat Steel Demand Strengthens
Hot-dip galvanized rolled steel imports to Ukraine soared 60% year-on-year in the first half of 2025, according to a report by Metipol. Total HDG import volume reached 147,000 tons, reflecting a sharp recovery in construction, automotive, and white goods production. This surge underscores Ukraine's increasing reliance on coated flat products amid rising domestic demand and limited local output.
In the second quarter alone, imports climbed 44.6% year-on-year and 30.3% quarter-on-quarter, reaching 83,140 tons. Turkey led the supply chain, delivering 126,810 tons—representing a dominant 86% share and an 83.6% increase year-on-year. Meanwhile, the European Union supplied 12,690 tons, marking an 11.3% annual decline.
Shift in Global Supply Dynamics and Pricing Pressure
Vietnam emerged as a growing supplier with a 39% rise in HDG exports to Ukraine, totaling 3,830 tons. In contrast, Chinese exports dropped by 26.9% to 1,680 tons, indicating shifting sourcing strategies among Ukrainian importers. The decline in Chinese and European volumes partly reflects pricing shifts and currency fluctuations.
Turkish HDG prices saw a slight decline in Q2 2025, increasing their competitiveness in the Ukrainian market. In contrast, EU steel prices rose due to euro appreciation against the US dollar. Vietnamese HDG remains more expensive than Turkish equivalents despite similar mechanical properties and coating grades.
Broader Flat Steel Market Trends in Ukraine
Ukraine imported 554,050 tons of flat rolled steel in H1 2025, up 16.8% from the previous year. Among these, coated flat steel (HS 7210) accounted for nearly 50%—263,260 tons—representing a 17.2% increase year-on-year. This trend aligns with infrastructure rebuilding projects, higher demand for corrosion-resistant steel, and a recovering industrial base.
As a result, Ukraine is reshaping its flat steel supply chain, increasingly leaning on Turkish mills while diversifying toward Southeast Asia. Importers may continue seeking cost-effective, high-quality HDG alternatives amid macroeconomic volatility.
ScrapInsight Commentary
The 60% jump in HDG imports highlights Ukraine’s dependency on foreign supply for coated flat steel. Turkish mills benefit from competitive pricing and logistical proximity. If EU prices remain elevated, Southeast Asian suppliers like Vietnam may gain ground. Policy shifts around anti-dumping or origin verification could further impact sourcing strategies by year-end.
