Ukraine’s Steel Sector Faces Crisis as Key Coking Coal Mine Shuts Down

February 7, 2025 – Ukraine’s steel industry is bracing for significant challenges following the closure of the Pokrovsk coking coal mine, the last major domestic supplier of metallurgical coal. The mine, located in Donetsk Oblast, ceased operations on January 13, 2025, as Russian forces advanced on the region, forcing Metinvest Group to evacuate workers and halt production.

The Pokrovsk mine supplied 66% of Ukraine’s coking coal in 2024, a critical raw material for steelmaking. With its closure, Ukrainian steel producers face a 3-million-ton shortfall in domestic supply. Imports of coking coal are expected to surge, with Ukraine looking to Poland, the U.S., and Australia to fill the gap. However, high transport costs and logistical challenges could drive up production expenses, making Ukrainian steel less competitive in global markets.

“The loss of Pokrovsk is a severe blow,” said Oleksandr Kalenkov, head of Ukraine’s steelmakers' association. “To produce 7.5 million metric tons of steel in 2024, we needed 1.9 million tons of coking coal imports. Now, that number will rise significantly, and the costs will be unsustainable.”

Ukraine, once a top-10 global steel producer, has slipped below 20th place due to the ongoing war. Industry experts warn that without a stable coking coal supply, annual steel production could drop from 7.5 million tons to as low as 2–3 million tons, further shrinking the sector’s contribution to Ukraine’s GDP, which was 5.7% in 2023.

While steel remains crucial for Ukraine’s post-war reconstruction, its production may increasingly rely on imported materials, leading to higher costs and longer supply chains.