The executive director of the Ukrainian Steel Construction Association discusses the current situation and trends in the steel construction market
Despite the challenges posed by the war, the steel structures market in Ukraine is showing moderate growth; however, structural challenges remain: excess capacity, uneven demand, and competition from imports are hindering the industry’s full recovery. In an interview with GMK Center, Anna Gontarenko, Executive Director of the Ukrainian Steel Construction Center Association, discusses the situation and trends in the steel structures market based on last year’s results, as well as the outlook through the end of 2026.
What were the results of 2025 for the Ukrainian steel structures market?
– 2025 presented a rather paradoxical situation: on the one hand, the market grew to 108,000 tons, which is 19% more than in 2024; on the other hand, this growth did not translate into full capacity utilization at Ukrainian enterprises. This situation indicates the presence of a structural capacity surplus in the market.
Domestic demand grew modestly, while a significant portion of the growth was driven by external factors, particularly imports related to international reconstruction projects.
Overall, the market remains significantly below pre-war levels: compared to 2021, consumption volumes have decreased by approximately 45–50 thousand tons, or nearly 30%.
The main drivers of demand remain infrastructure construction, reconstruction projects, industrial and logistics facilities, as well as the energy sector.
What was the trend and stability of demand in 2025 from the construction and infrastructure restoration sectors, as well as the energy sector?
– In 2025, these segments drove the market’s growth, but demand remained uneven and dependent on external financing. On the one hand, the scale of needs is significant—transport infrastructure accounts for 7–8% of the total volume. On the other hand, project implementation occurs in waves, making it impossible to generate stable long-term demand for steel structure manufacturers.
A telling example of the critical state of infrastructure is the Paton Bridge in Kyiv. According to the results of a 2025 inspection, the bridge’s structures were deemed inoperable with their remaining service life exhausted. The structure has been in operation for over 70 years without a full-scale renovation, leading to significant physical wear and tear of the steel components, supports, and roadway. This clearly illustrates the general trend of accumulated deferred repairs in the infrastructure sector and creates additional demand in the structural restoration and reinforcement segment.
There is excess capacity among steel structure manufacturers in the market. What is preventing an increase in exports? (Steel structure exports in 2025 totaled 33,000 tons, worth $80 million.)
– Despite having certification under the European EN 1090 standards, Ukrainian manufacturers face a number of barriers. First and foremost, these include war risks and the perception of Ukraine as an unstable supplier, limited access to financing, as well as intense competition from Turkish and other foreign manufacturers. As a result, Ukrainian plants cannot fully compensate for the underutilization of the domestic market through exports.
How acute is the problem of steel structure imports? Does it hinder the utilization of Ukrainian production capacity?
– Imports of steel structures are growing, especially over the past two years, and are already putting significant pressure on the market. The problem is that even in reconstruction projects, imported structures are often used—despite the availability of sufficient production capacity in Ukraine. That is why the issue of localization remains critical: it is necessary to more actively involve Ukrainian manufacturers in the implementation of projects as early as the planning and design stages.
How has the production cost of steel structures changed over the past year?
– In 2025, the production cost of steel structures continued to rise, although the rate of increase slowed compared to previous years.
The main reasons remained rising energy costs, a significant increase in wages—by nearly 40%—as well as fluctuations in prices for rolled steel and materials. The cost index for construction rolled steel in 2024–2025 showed significant volatility: a decline in 2024 and early 2025 was followed by an increase in late 2025 and early 2026, confirming the instability of the material component of production costs. An additional factor was the underutilization of production capacity, which led to an increase in the share of fixed costs in the cost of production.
A relative stabilization of inflation at around 8% acted as a restraining factor, limiting the rate of cost growth.
What systemic issues in the steel structures and steel construction market are most pressing today?
– The steel structures market faces a number of systemic challenges: a shortage of skilled workers, underutilization of production capacity, uneven demand, as well as logistical and energy risks. It is worth noting the gap between the scale of reconstruction needs and the actual pace of project implementation, which is holding back the industry’s development.
Last year, most manufacturers underwent conformity assessment and certification procedures through Ukrainian conformity assessment bodies to gain access to the domestic market in accordance with harmonized European standards. This ensured that products met EU requirements, particularly regarding the production control system (FPC) and technical documentation.
At the same time, the transition to a new model of technical regulation creates additional challenges for the market: adapting production processes to new procedures, an increased administrative burden, and the need to unify approaches among different conformity assessment bodies.
How intense is competition in the market? Is there a problem with dumping given the excess capacity?
– Competition in the domestic market is intense due to excess production capacity. This leads to significant price pressure, declining margins, and the emergence of dumping, especially in the standard structural steel segment. As a result, companies are forced to compete not only on quality but also on price.
What are your outlooks for the Ukrainian steel structures market through the end of 2026?
– Further market growth of 8–10% is expected, reaching approximately 117,000 tons. Key drivers: expansion of infrastructure construction, implementation of reconstruction projects, and attracting international financing. At the same time, the quality of this growth will depend on the ability to launch large-scale projects, ensure stable financing, and involve domestic manufacturers in their implementation.