Ukraine's steel production halved in August

Ukraine's steelmakers cut steel production by 57.3% year-on-year in August to 277,000 tonnes.

Source: GMK Center

Details: According to Ukrmetallurgprom, Ukrainian steelmakers produced 277,000 tonnes of steel in August 2026, down 57.3% year-on-year and 39.4% compared with July.

In the first eight months of the year, steel production in Ukraine fell by 12.5% year-on-year to 4.3 million tonnes. Pig iron output declined by 14.8% to 4.35 million tonnes, while rolled steel production dropped by 15.6% to 3.59 million tonnes.

GMK Center noted that Russia continues to destroy Ukraine's steel industry.

Last month, Zaporizhstal completely halted operations after Russian ballistic missile attacks on the plant on 11 and 27 August. Seven employees were killed and another 21 people were injured.

Energy and transport facilities, as well as blast furnace and coke production facilities, were damaged. Before shutting down in August, the plant had produced 46,200 tonnes of steel.

On the night of 4-5 September, the Kametstal steel plant in Kamianske was struck by several ballistic missiles. Metinvest's press service reported that five people were killed and four employees injured in the attack.

Key production facilities and infrastructure were also damaged, forcing the plant to halt all production processes.

In addition, Ukraine's mining and metals sector is currently facing what amounts to a blockade of Ukrainian seaports, as well as EU trade restrictions, including the Carbon Border Adjustment Mechanism (CBAM) and steel import quotas.

"In August, we recorded one of the lowest steel production figures in Ukraine's history. The only worse months were April and December 2022," said Andrii Tarasenko, chief analyst at GMK Center.

Tarasenko said that during the first half of the month, production volumes were affected by the maritime blockade and restrictions on supplies to the EU. However, in the second half of August, two of the country's largest steel producers halted operations as a result of direct Russian attacks, which also killed civilians.

"Unfortunately, production volumes will therefore be even worse in September," he predicted.

GMK Center noted that in 2025, Ukrainian steelmakers increased production of finished rolled steel products by 4.8% year-on-year to 6.52 million tonnes.

Pig iron production rose by 11.2% year-on-year to 7.88 million tonnes, while steel production fell by 2.2% to 7.41 million tonnes.

Background:

• Following a Russian ballistic missile strike on 11 August, Zaporizhstal completely halted operations. The attack damaged the plant's production facilities and energy infrastructure.
• The Russian strike on 11 August caused the most extensive destruction at Zaporizhstal since World War II. After another strike on 27 August, the timeframe for restoring operations remains purely theoretical.
• The Kametstal steel plant in Kamianske halted all production processes following an overnight Russian ballistic missile strike, and the company has been unable to provide a timeframe for resuming operations.

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