 |
| Ukraine iron |
Current Capacity Utilization Across Mining, Steel, and Ferroalloy Plants
Ukraine’s iron and steel enterprises operate under significant challenges in 2025 due to ongoing military conflict and economic instability. As a result, the capacity utilization rates vary widely across different companies and sectors. For instance, Metinvest Group’s Northern and Central mining plants reach nearly 100% utilization, whereas Southern and Ingulets plants remain idled due to weak profitability. Overall, the average utilization at Metinvest’s mining assets was about 52% during 2024 and early 2025. Meanwhile, Ferrexpo’s Poltava plant maintained a 57% utilization despite suspending two pellet lines due to VAT refund issues. This uneven production reflects companies' attempts to adapt to difficult market realities.
Steel Plants’ Production Rates and Operational Status
Steel plants in Ukraine reported an average capacity utilization of approximately 45% in early 2025, consistent with 2024 levels. However, individual performances vary: Zaporizhstal operates at 74%, Kametstal at 61%, and Interpipe Steel at 65.6%. Conversely, ArcelorMittal Kryvyi Rih operates at a mere 27.5%, while Dnipro Metallurgical Plant restricts activity to rolling operations with utilization below 4%. These disparities stem from financial pressures and fluctuating market demand, highlighting structural weaknesses in the sector amid external stressors.
Ferroalloy and Coking Plants: Recovery and Shutdowns
The ferroalloy sector suffered steep declines following the full-scale invasion, with key plants like Zaporizhzhia and Nikopol halting production due to electricity costs and security concerns. Gradual resumption began in mid-2024, lifting utilization to roughly 8–9% last year with slight improvements in 2025. Coking plants face similar challenges: Zaporizhkoks runs at 54% capacity, whereas Dnipro Metallurgical Plant ceased coke production entirely. Persistent obstacles include security risks, rising energy tariffs, labor shortages, and weak external demand, constraining sector recovery.
ScrapInsight Commentary
Ukraine’s iron and steel capacity utilization remains uneven due to security and economic pressures. Without resolution of VAT and energy issues, production will likely stagnate. The sector needs stable policies and energy reforms to regain pre-conflict output levels, supporting regional supply chain resilience and recycling industry growth.
