Ukrainian Steelmakers Cut Semi-Finished Product Exports by 35% in Q1 2025

Steel Exports Drop Amid Decreased Demand

In the first quarter of 2025, Ukrainian steelmakers reduced semi-finished steel exports by 34.8% compared to 2024. This brought total exports down to 294.2 thousand tons. It marks a 17.4% drop from the previous quarter. The decrease reflects global steel market challenges, as demand for Ukrainian semi-finished products declines.

Key Export Destinations and Market Shifts

Bulgaria, Turkey, Poland, and Egypt were the top destinations for Ukrainian semi-finished steel in Q1. Bulgaria received the most, importing 126.64 thousand tons. Turkey followed with 60.52 thousand tons. Poland saw an increase, receiving 25.48 thousand tons, including the first shipment in March. Shipments to Egypt stopped after January, highlighting a shift in market dynamics.

In March 2025, Ukrainian steelmakers shipped 93.51 thousand tons of semi-finished products. This was a 22.1% decrease from February and an 18.4% drop in revenue compared to March 2024. Despite this, Poland maintained steady shipments, offsetting some of the overall export decline.

Declining Export Revenues and Market Outlook

The export decline significantly impacted Ukraine’s revenues. In Q1 2025, export revenues dropped by 37.4%, totaling $138.39 million. In March, revenues fell 1% year-on-year and 18.4% from February. Traditional markets like Bulgaria and Turkey reduced their imports. However, the new market in Poland helped minimize the extent of the export drop.

Looking back, 2024 was more successful. Ukrainian steelmakers increased exports by 56.7%, largely driven by a surge in shipments to Egypt. However, Q1 2025 shows a contraction due to reduced demand in key markets.

Conclusion

The outlook for Ukrainian steelmakers in the short term is challenging. Exports and revenues are decreasing. As global demand for steel products remains volatile, Ukrainian steelmakers will need to explore new markets. The focus will be on emerging markets like Poland to help recover from the downturn.