Ukraine's steel production fell by 80% in September following Russian attacks that hit seven blast furnaces: five at Metinvest facilities and two at ArcelorMittal.
Source: a study by the Centre for Economic Strategy (CES)
Details: In addition, the value of metal exports fell by 48% in August compared with August 2025 due to logistical difficulties.
"Ukraine still has the potential to export ore, but the blockade of ports has effectively made it impossible to ship it along traditional maritime routes. Switching to alternative routes is too expensive," the study said.
Even before the attacks, steelmakers had faced the EU's Carbon Border Adjustment Mechanism (CBAM). On 1 July 2026, the European Union also introduced stricter restrictions and reduced duty-free quotas for imports of Ukrainian steel products.
In addition, steelmakers suffered from electricity supply disruptions during the winter.
Ukraine's metallurgical industry, along with related sectors, contributed more than 5% of GDP last year. In an October forecast, investment company Dragon Capital estimated that the suspension of steel production and a decline in ore mining would reduce GDP by 1. 5%. It has since revised its outlook and now expects the Ukrainian economy to contract in both 2026 and 2027.
If steel plants remain idle throughout 2027 and other sectors fail to make up for the lost output, the economic contraction could be even deeper, CES noted.
Background: Following Russian attacks, ArcelorMittal Kryvyi Rih began the process of placing the plant into cold shutdown mode . The plant will not resume operations until the war ends.
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