Ukraine steelmaker Metinvest positions for steel market recovery amid conflict: CEO

Metinvest, the largest Ukrainian mining and metals company, is consolidating its ongoing projects and positioning itself for a steel market recovery through domestic and international investments, CEO Yuriy Ryzhenkov told Platts, part of S&P Global Energy, on Oct. 15.

Ryzhenkov was hoping for a renewed international focus on the Russia-Ukraine war to facilitate an end to the conflict. The war has drastically diminished Ukraine's steel production capacity, with Metinvest losing facilities in occupied Mariupol and a destroyed coke plant in Avdiivka, which together produced 10 million metric tonnes annually before the invasion.

Metinvest's remaining plants now operate at reduced capacity: Zaporizhstal JV is at 75% and Kamet Steel at 65%, hindered by war-damaged equipment, Ryzhenkov said.

"I hope that will switch attention back to the Ukrainian conflict because the focus has shifted to other global issues," Ryzhenkov said, referencing tensions in the Middle East. He acknowledged increased interactions between Ukrainian and US officials but added that he still sees "no clear path to the end of the war."

"There were many expectations for a quick resolution. Recently, President [Donald] Trump and other US officials acknowledged it's more challenging than anticipated," Ryzhenkov said.

Despite wartime challenges, Metinvest is executing large-scale repairs and modernization projects to maintain and expand production capabilities. The company prioritizes reducing carbon emissions through modernized equipment and processes, even as Ukraine seeks to postpone the strictest Carbon Border Adjustment Mechanism provisions due to current geopolitical realities.

In the first half of 2025, Metinvest invested $28.8 million at Kamet Steel and $6.4 million at Zaporizhstal JV. Kamet Steel completed its first major overhaul since the invasion, repairing blast furnace No. 9 for $16 million and restoring a converter's equipment.

The company is also pursuing energy independence, aiming for 60% self-sufficiency of its facilities' energy needs. Currently, it generates approximately 100 MW of the required 600 MW through solar and other power sources. Upgrades are underway at the Northern iron ore facility, with design work in progress to enhance a sintering machine for improved pellet production to meet EU green steelmaking standards, according to Ryzhenkov.

While most of Metinvest's iron ore facilities are running at full capacity, one remains idle due to energy costs and staff shortages from military conscription, Ryzhenkov added.

Strategically, Metinvest's joint venture with Italian steelmaker Danieli for the Adria project in Italy is becoming a crucial growth initiative timed for market recovery. The company has signed agreements with Italian authorities and is finalizing bank financing.

"Financing is on the critical path. It's not permissions; it's how quickly the banks can act," Ryzhenkov said.

The current steel market downturn presents strategic opportunities for expansion. "We are at the bottom of the cycle. That's why everyone is protective, including the US and Europe," Ryzhenkov noted, referring to the latest news on tariffs. "Building a mill takes [two and a half to three] years, so by the time we finish, we are likely to be in a different market phase."

Metinvest is also divesting non-core assets, including its US subsidiary, United Coal. "We have proposals from several buyers and are waiting for committed bids," the CEO stated, highlighting a structured competitive process with external advisers.