Ukraine's Steel Production Grows 9.9% Despite Mine Closure

Ukraine's steel production has continued to grow in early 2025, with raw steel output rising by 9.9% to 1.18 million metric tons, despite the closure of the Pokrovsk coking coal mine due to security issues as Russian forces advance. The Ukrainian steelmaker Metinvest halted operations at this crucial mine, which has raised concerns about future production levels, potentially dropping to 2-3 million metric tons in 2025. Year-over-year figures show a notable increase in both rolled steel and pig iron production, with rolled steel increasing by 6.6% and pig iron by 9.8% in February 2025 compared to the previous year. However, the future of Ukraine's steel industry remains uncertain due to anticipated challenges in the global steel market that could affect exports and pricing. Analysts note that while production rebounded in 2024, external factors may hinder growth in 2025. Additionally, a draft minerals deal between the US and Ukraine aims to bolster economic support, particularly in the context of Ukraine's rich mineral resources essential for future industries like electric vehicle batteries.