Post-war reconstruction of damaged and destroyed real estate and infrastructure could become a significant boost for domestic steel consumption. This is why the driver of demand for metal products will be construction, but everything depends on the availability of strong security guarantees. Otherwise, investors will not invest or build.
This was shared in an interview with FAQ Talks by Dmytro Nikolaienko, Commercial Director of Metinvest.
"The biggest potential in terms of steel consumption will come from construction. The reconstruction of housing and infrastructure requires a lot of steel. As for other industries, we need to see whether the production of cars and heavy machinery, as well as machine engineering in general, will develop, as these were present in Ukraine before the war to varying degrees," noted the Commercial Director of Metinvest.
Since reconstruction will require huge investments, the necessary condition for attracting them is providing Ukraine with sufficient security guarantees.
"In my opinion, the main issue is what the security guarantees will be, because investments require stability. It is clear that even with minimal guarantees, some funds will be invested in infrastructure restoration, but to attract significant investment, there must be strong security guarantees and stability," emphasized Dmytro Nikolaienko.
Overall, our country has great potential to increase steel consumption.
"As part of infrastructure recovery, Ukraine can consume at least 300 kg of steel per capita per year. And in the early stages, it could be even more, up to 400 kg. For example, China consumes about 550 kg of steel per capita per year, mostly due to infrastructure construction," the expert concluded.
The recovery of Ukraine's metallurgy, destroyed by the war, is directly dependent on international security guarantees. Without reliable conditions for long-term planning, Metinvest will not be able to implement large-scale investment projects.
The main challenges for Metinvest in 2025 are financing projects for the modernization and "green" transition of the steel industry, as well as ensuring stable demand for Ukrainian steel in the domestic market. The business also requires a postponement for Ukraine regarding the introduction of CBAM.
