According to the Metinvest Group report, the company reduced steel production by 20% quarter-on-quarter (QoQ) to 454,000 tonnes in the first quarter of 2026. Pig iron output fell to 438,000 tonnes during this period. The primary causes were unstable power supplies in January-February and subsequent production chain disruptions. For the Ukrainian market, this is a significant signal, as output changes from major producers directly affect the availability of raw materials, semi-finished products, and finished steel goods.
Production Metrics and Factors of Decline
In annual terms, pig iron production for January-March remained largely at the level of the previous year, while steel output decreased by 7% year-on-year (YoY). The company attributes this mainly to energy supply instability, which hindered a steady production pace. Meanwhile, merchant semi-finished products fell by 32% QoQ to 185,000 tonnes, as more steel was prioritized for further downstream processing stages.
Despite the decline in steel and semi-finished goods, finished rolled metal production grew by 8% QoQ and 11% YoY, reaching 660,000 tonnes. This indicates a shift in focus toward high-value-added products and the company's commitment to maintaining final product deliveries. In the raw materials sector, total iron ore concentrate output decreased by 2% QoQ to 3.9 million tonnes, while merchant iron ore products dropped by 7% to 3.5 million tonnes.
Additional pressure came from a 24% YoY decline in pellet production due to the temporary shutdown of a roasting machine following energy system damage, and an 8% QoQ drop in coke output to 256,000 tonnes. The coke segment suffered from coal delivery delays caused by the same energy restrictions. Collectively, this highlights that infrastructure and energy resilience remain the critical factors for the industry.
Impact on the Steel Market and Solutions from winox.ua
For Ukraine’s domestic market, reduced steel output from a major producer implies a potentially tighter supply-demand balance, especially in industrial consumption sectors where predictable timelines and stock availability are crucial. Even if finished rolled products showed growth this quarter, the drop in steel, coke, and specific iron ore products may sustain increased price volatility and logistics costs. For procurement managers, this necessitates more careful contract planning, inventory management, and delivery scheduling.
In such conditions, a reliable supply channel for metal products becomes vital for manufacturing and construction companies. winox.ua works with business clients in the rolled metal, stainless steel, and non-ferrous metal segments, helping to ensure stable supplies and more predictable procurement terms even during market fluctuations. For enterprises dependent on production continuity, this is a practical tool for mitigating risks associated with shortages or sharp price spikes.
Furthermore, changes in Metinvest's production mix may impact not just volumes, but the overall product structure of market offerings. Consumer companies should evaluate not only current price quotes but also the medium-term availability of specific metal products and raw materials. This approach allows for the timely adaptation of procurement strategies to the industry's new production realities.
What These Results Mean for Industrial Consumers
Metinvest's reporting data shows that despite the growth in finished rolled products, key market risks remain tied to power supplies, logistics, and raw material consistency. This means Ukrainian manufacturers, service metal traders, and end-consumers must build more flexibility into their production and purchasing plans. This is particularly relevant for businesses operating with long-term contracts that are highly sensitive to supply interruptions.
At the same time, the company's financial and tax performance underscores its systemic role in the national economy. As previously reported by GMK Center, Metinvest paid 4.3 billion UAH in taxes and fees to budgets of all levels in Ukraine during Q1 2026. For the market, this confirms that even under production constraints, the sector remains a foundation of industrial stability, and any output changes by major players will continue to define the landscape of the Ukrainian metallurgical sector.