Dnipro Metallurgical Plant (DMZ), one of Ukraine’s largest steel producers, has reported a significant decrease in production of commercial rolled metal products in early 2025. The company’s production of steel products and metallurgical coke has been severely impacted, signaling challenges in the Ukrainian steel industry.
DMZ Faces Severe Drop in Steel Production
In the first four months of 2025, DMZ reduced its production of commercial rolled metal products by 52.4%, compared to the same period in 2024. The total production for the period stood at only 11.2 thousand tons. This sharp drop reflects ongoing struggles in the steel sector, compounded by geopolitical instability and economic difficulties.
In April, production plummeted by 62%, with only 4.1 thousand tons of steel products manufactured. This represented a significant reduction compared to April of the previous year. Notably, no products were produced in March, further indicating production constraints.
Metallurgical Coke Production Declines
Alongside the decrease in rolled steel production, DMZ’s production of metallurgical coke also faced a substantial decline. Coke production fell by 24.8% year-on-year in the first four months of 2025, amounting to just 70.6 thousand tons. In April, coke production declined by 34.8% compared to the same period last year, reaching only 15.7 thousand tons.
Strategic Shifts and Focus on Domestic Market
Despite these challenges, DMZ is adapting its strategy. In 2024, the company focused on improving its product competitiveness. It reduced production costs by using continuously cast billets, especially for producing channels at Rolling Shop No. 2. This approach has helped DMZ lower costs and improve competitiveness in the domestic market.
The management continues to prioritize expanding its presence in Ukraine. Their goal is to overcome the production hurdles caused by the current economic climate.
Looking Ahead: A Difficult Road Ahead for DMZ
Despite some efforts to improve operations, the future remains uncertain for DMZ. The substantial decline in steel and coke production in early 2025 underscores the difficulties faced by the company. As one of Ukraine’s largest steel producers, DMZ’s performance is a critical indicator of the health of the broader Ukrainian steel industry.
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