Ukrainian steel mills may increase steel production by 17% in 2026
Metallurgical enterprises of Ukraine in 2026 may increase steel production by 17% to 8.9 million tons from 7.6 million tons in 2025, said Sergey Povazhnyuk, deputy director of the state enterprise Ukrpromvneshexpertiza in an interview with the publication. telegraf.com.ua .
According to him, the most important factors limiting production were security-related military risks, staff shortages, unstable electricity supply due to missile and drone strikes on the energy infrastructure, and the continued shortage of scrap metal in the domestic market.
"As for the forecast for 2026, metallurgical plants have already announced plans to significantly increase the production of liquid steel, approximately to 8.9 million tons," the expert said.
At the same time, he noted that the shortage of ferrous scrap is worsening in the Ukrainian metallurgy, in particular due to the increase in the export of these raw materials abroad.
"If the steel mills manage to implement the planned increase in production, the collected scrap may simply not be enough. Domestic consumers should be provided with raw materials as a priority, especially now, during wartime," Povazhnyuk said.
He cited calculations according to which 1 ton of scrap metal, which is processed into metal products at Interpipe's facilities, for which scrap is the main raw material, brings 7.5 thousand UAH to the state in the form of taxes paid. In addition, 1 ton of scrap used at the plants of the Metinvest Group generates about UAH 9.3 thousand of tax revenues to budgets of all levels.
As Povazhnyuk emphasized, this is a direct benefit that the state receives by leaving all scrap in the country and processing it into steel. In addition, such processing has a multiplier effect for the entire economy, as it stimulates growth in related industries, such as the production of iron ore, coke, and ferroalloys.
"All this needs to be transported within the country, that is, the transport industry receives additional cargo. Calculations show that these sectors will pay another UAH 5.5-5.8 thousand in taxes to the budget per ton of scrap metal consumed. Therefore, the total effect on the budget from processing 1 ton of scrap metal in Ukraine will amount to 13-14 thousand UAH/ton. In addition to cash receipts to the budget, metal plants provide tens of thousands of official jobs at home and at related enterprises," the deputy director argued.
In addition, Povazhnyuk stated that exporters pay taxes and payroll charges (personal income tax, ERU, military duty), land tax and income tax.
"According to our data, in 2024, the largest exporting companies, which provided almost 90% of exports of Ukrainian scrap metal, exported a total of 247 thousand tons of raw materials abroad, paying a total of only UAH 12.3 million in taxes. Thus, the state received