Ukraine’s steel production is heavily reliant on the Pokrovsk coal mine, the country’s primary source of coking coal essential for steelmaking. The potential closure of this mine, due to the advancing Russian forces, could significantly impact steel output. Industry experts warn that steel production could drop to 2-3 million metric tons next year, down from the 7.5 million metric tons expected in 2024.

This situation is exacerbated by the difficulty of importing coal due to military risks and logistical challenges. Ukrainian steelmakers are exploring alternative sources of coking coal, but increased costs could make their steel less competitive on the global market.