Ukraine's post-war reconstruction efforts are expected to significantly increase domestic steel consumption, shifting the industry's focus from exports to meeting internal demand. Prior to the war, approximately 80% of Ukraine's semi-finished and finished rolled metal products were exported. However, the rebuilding of destroyed infrastructure and real estate necessitates a substantial allocation of steel for domestic use.
The loss of the Mariupol steel mills resulted in a 40% reduction in Ukraine's steelmaking capacity, leading to shortages and increased reliance on imports, particularly for flat and shaped rolled products. While the initial deficit was mitigated through stock balances and logistical adjustments, the need for imports persists due to limited domestic production of certain steel types and ongoing challenges such as workforce shortages and energy supply issues.
Despite these challenges, the stabilization of the steel market and the anticipated growth in construction and infrastructure projects are expected to drive increased steel consumption within Ukraine. This shift presents opportunities for domestic producers to focus on high-value products and for the industry to adapt to the evolving demands of the national economy.
Vietnam Steel by Hoa Sen Group
