Shutdown of Ukrainian Metallurgical Plants Caused by Russian Strikes Creates Steel Deficit

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METALLURGY 29.10.2026 / author:
Shutdown of Ukrainian Metallurgical Plants Caused by Russian Strikes Creates Steel Deficit

Developers are forced to import rebar from China and Turkey

Targeted Russian missile strikes shut down Metinvest enterprises, ArcelorMittal Kryvyi Rih, and Interpipe in autumn. The country lost its domestic steel smelting, triggering an acute metal shortage in the construction sector. This was reported by Economichna Pravda citing GMK Center, according to the portal PromPolitInform.

Until recently, Ukrainian developers relied mainly on domestic steel plants, but in autumn 2026 the situation changed drastically. According to Ukrmetallurgprom, the share of imports in domestic consumption rose from 22.6% in 2021 to 46.8% in the first three quarters of 2026. Rebar imports alone reached 84 thousand tons, almost 50% higher than in the same period of the previous year.

China and Turkey became the main suppliers, as their products face duties and quotas in the US and EU markets. According to GMK Center, Chinese producers accounted for a third of hot-rolled coil deliveries, nearly 60% of cold-rolled sheets, and 51.4% of steel pipes to Ukraine. Turkish businesses supplied a third of hot-rolled products and half of polymer-coated roofing sheets.

Imports via Logistics Bottlenecks

Covering the deficit requires complex overland routes and ports of neighboring European countries because direct maritime connection is blocked. Importing batches takes at least two months, while border crossings and roads operate under heavy congestion. The situation is further complicated by Ukrzaliznytsia freight tariff hikes of 30% and a general shortage of locomotive traction.

Market participants note that corporate reserves are depleting, and the transition to foreign raw materials leads to rising production costs. KAN Development founder Ihor Nikonov reported that total construction costs in the country increased by 30-35% over the past year. Prices for all basic materials, including sand, crushed stone, concrete, and rebar, have gone up.

Debate Over Protective Tariffs

The construction sector and metallurgical companies disagree on the future regulatory policy of the state. Developers insist on the immediate cancellation of antidumping duties to reduce financial pressure on reconstruction projects. Meanwhile, Metinvest representatives oppose opening borders to cheap imports that might use Russian raw materials.

At the same time, GMK Center director Stanislav Zinchenko urges not to dramatize the current supply situation. He believes price fluctuations and logistical difficulties are temporary market reactions that will gradually balance out. Metallurgists demand comprehensive government support measures, including a moratorium on freight tariff hikes and assistance in restoring production capacities.

Photo: Economichna Pravda

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