Ukraine’s steel market has experienced a significant shift in the first half of 2025, marked by a decline in domestic production and a concurrent increase in imports. While production has been under pressure, consumption of steel products within the country rose by 13% year-on-year. This has created a growing reliance on foreign steel, with Turkey emerging as a dominant supplier, accounting for 60% of Ukraine’s rolled steel import market during the period. The data reveals a notable imbalance between local supply and demand, with Ukrainian industry increasingly dependent on external sources to meet its needs.

The decrease in domestic steel production is a result of various factors, including the ongoing conflict and the burden of rising energy prices, which have made it difficult for local producers to maintain operations and compete. However, a recent policy change to allow direct contracts with state-owned nuclear energy company Energoatom is expected to help some enterprises mitigate the impact of high electricity costs. The shift in market dynamics highlights the challenges facing Ukraine’s industrial sector and the importance of strategic trade partnerships for securing essential materials. The rise in imports, particularly from Turkey, suggests a significant realignment of regional supply chains.