Ukraine's Steel Production at Risk of Halving if Russia Captures Pokrovsk

Written by Kathrine Frich

Sep.25 - 2024 6:41 PM CET

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Photo: Shutterstock
Photo: Shutterstock
Losing Pokrovsk could cause production to plummet.

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Ukraine's steel production could be slashed by half if Russian forces take control of Pokrovsk, a city in the Donetsk region, according to Oleksandr Kalenkov, president of the Ukrainian metal companies association Ukrmetallurgprom.

Losing Pokrovsk could cause production to plummet

Speaking at a forum hosted by Ekonomichna Pravda, Kalenkov stressed that Pokrovsk is home to Ukraine’s only coal mine capable of producing coking coal, an essential component for steel production, according to Digi24.

Over the past two years of the full-scale invasion, Ukraine’s steel output has ranged from 6 to 6.5 million tons (6.6 to 7.1 million U.S. tons) annually.

Kalenkov noted that under normal circumstances, Ukraine has the capacity to produce 12 million tons (13.2 million U.S. tons) of steel each year. However, losing Pokrovsk could cause production to plummet to just 2 to 3 million tons (2.2 to 3.3 million U.S. tons) annually.

Critical Natural Resources

"The loss of Pokrovsk would result in a severe shortage of coking coal," Kalenkov explained, emphasizing the strategic importance of the city, which has seen intense fighting in recent months.

He highlighted that the region's natural resources are critical for sustaining steel production, which is vital for Ukraine's economy, especially during wartime.

Despite these challenges, Ukraine has shown remarkable resilience, producing an estimated 7.5 million tons (8.3 million U.S. tons) of steel this year. However, the potential fall of Pokrovsk poses a grave risk to the country's steel industry, which is crucial not only for economic stability but also for supporting military efforts.

The loss of Ukraine’s primary coal mine would not only limit steel production but also disrupt the broader supply chain, further exacerbating the challenges the country faces during the ongoing conflict.

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