This marks a 21.6% rise compared to the 6.23 million tons produced in 2023, according to data released by the Ukrmetallurgprom Joint Stock Company.
Annual Production Highlights
- Total Steel Production in 2024: 7.58 million tons
- Total Steel Production in 2023: 6.23 million tons
- Year-over-Year Growth: 21.6%
The final month of the year proved to be the most productive, with steel production in December 2024 increasing by 1.14% compared to November 2024.
Outlook for 2025
Despite the impressive growth in 2024, the outlook for the metallurgical industry in 2025 appears challenging. GMK Center has forecasted potential setbacks due to several factors:
- Rising Energy Tariffs: Increased costs for energy may impact production expenses.
- Higher UZ Cargo Tariffs: An uptick in cargo tariffs could affect export profitability.
- Declining Global Prices: Falling prices on international markets may reduce revenue from exports.
These factors could lead to a 16% decline in exports of metallurgical products, resulting in decreased foreign exchange earnings and a potential rise in the dollar exchange rate.
Export Performance
In addition to domestic production growth, Ukraine's exports played a crucial role in the industry's success:
- Total Exports in 2024: 131 million tons of products worth $41.6 billion
- Top Export Commodity: Iron ore, with 33.6 million tons exported
Government and Industry Response
Deputy Minister of Economy and Trade, Taras Kachka, highlighted the robust export figures, particularly emphasizing the dominance of iron ore in Ukraine's export portfolio. The government and industry stakeholders continue to monitor market conditions closely to navigate the anticipated challenges in the coming year.
Conclusion
The Ukrainian metallurgical sector's remarkable growth in 2024 underscores the resilience and capability of domestic enterprises amidst a complex economic landscape. However, the projected difficulties for 2025 call for strategic measures to mitigate the impact of rising costs and fluctuating global prices. Continued support and adaptive strategies will be essential to sustain growth and maintain Ukraine's competitive edge in the global metallurgical market.
About Ukrmetallurgprom Joint Stock Company:
Ukrmetallurgprom is a leading association in Ukraine's metallurgical industry, dedicated to promoting and supporting the growth and development of domestic steel production and related enterprises.
