Losses in Export Revenues of Ukraine’s Metallurgical Sector in 2025 May Exceed $1 Billion

Analysts at GMK Center note that the Ukrainian metallurgical sector faced a significant reduction in export revenues in January-April 2025 due to falling global prices for metal products. The most affected was the export of iron ore: over four months, export volumes decreased by 10.2%, totaling 11.15 million tons, while export revenue fell by 20.9% — to $892.99 million in monetary terms.

This is reported by AgroReview

Reasons for the Decline in Export Revenues

Industry experts emphasize that Ukrainian metallurgists find themselves in a difficult situation due to the simultaneous rise in production costs and the decline in product prices. One of the main reasons for the increase in production costs has been the high tariffs imposed by state monopolies. Despite this, global markets are showing a trend of decreasing prices for metal products, forcing producers to cut back on shipments to avoid losses.

“The situation resembles a pair of scissors: production costs are rising due to high tariffs from state monopolies, while prices for finished products are falling. To avoid accumulating losses, it is necessary to reduce shipments,” experts explain.

Forecast and the Role of Metallurgy in Budget Revenue

GMK Center emphasizes that under the baseline scenario, total losses in export revenues for Ukraine’s mining and metallurgical complex in 2025 may exceed $1 billion. The results of the first four months of the current year confirm the deterioration of the pricing situation in external markets and a reduction in steel exports.

Despite the challenges, the metallurgical sector remains an important contributor to the state budget. Over the past five years, the largest metallurgical enterprises have paid ₴190 billion (equivalent to $6.2 billion) in taxes and fees to the Ukrainian budget.