Ukrainian steel makers complaint about growing tariffs, heavy expenses
MOSCOW. Oct 16 (Interfax) - Growing tariffs for rail transportation and electricity are among the main risks Ukrainian steel makers are facing, Ukrainian media outlets reported citing a statement of Ukrmetallurgprom association head Alexander Kalenkov at a roundtable titled 'What Hinders the Growth of Ukrainian Metallurgical Production'.
The risks are include personnel shortages, growing expenses, military risks, an increase of the export of strategic raw materials, which are scarp metals, the introduction of the CBAM system on January 1, 2026, and problems related to cheap financing, Kalenkov said. Global problems include the market's dependency on China in terms of prices of metal products, he said.
GMK Center Director Stanislav Zinchenko said that Ukraine exports 45%-50% of steel products, and the reduced demand on the global market has a negative impact on domestic steel makers. European companies do not plan to increase production of metal products, he said.
"No one is expecting the growth of steel production, and it means that the demand on Ukrainian iron ore raw materials will decline too," he said.
In addition, steel makers' costs, including logistics, are growing, he said. Trade barriers also have a negative impact, and an additional tax on supplies to the European Union as part of the CBAM mechanism is introduced on January 1, 2026.
ArcelorMittal Krivoi Rog's director for government relations Oleg Krikovsky spoke about growing customs payments. Customs officers adjust the customs price of imported raw materials upwards in order to replenish the budget, he said, adding that there is a problem of insurance against military risks for the mining and metals sector.
Interpipe Group director for government relations Natalya Sidoruk said that electricity is a sensitive issue for the group because its electric steel-melting complex consumes a lot of electricity.
"We're now experiencing problems with electricity, albeit this type of steel produced at our complex gives us advantages on the European market, because this complex makes 'green' steel," Sidoruk said, adding that the company experiences issues with insurance of military risks and a personnel shortage.
