Ukraine produced no steel at all last month, Oleksandr Kalenkov, president of the steelmakers’ association Ukrmetalurhprom, says, according to Ukrainian Radio. Russian missiles have destroyed the blast furnaces at its plants, stopping an industry that ran for more than 150 years.

At its peak, Ukraine smelted more than 42 million tons of steel a year, more than a third of what the entire EU produced last year. Before the full-scale invasion, steel and mining earned over a third of Ukraine’s exports and up to 12% of GDP. With the furnaces down, the country now risks losing billions of euros in export earnings, tax revenue, and thousands of jobs, Kalenkov warns.

“What is happening now is not just a hard or critical situation. It is a tragic situation when an industry more than 150 years old produced zero steel last month,” Kalenkov says.

The collapse is the end of a long descent. Output fell from more than 40 million tons to 22 to 23 million after 2014, and to 7.5 million last year, Kalenkov says. Fifteen years ago, the sector earned half the country’s foreign currency.

Steel remains Ukraine’s second-largest foreign-currency earner, employing more than 70,000 people directly and paying close to $1 billion a year in taxes.

A pillar knocked out piece by piece since 2014

The war has chipped at the industry for more than a decade. Ukraine lost about a third of its capacity after 2014, along with almost all its coking-coal mines. It later lost the last one, the Pokrovske mine, too. In 2022 it lost the Mariupol production site, more than 40% of what Ukraine then made, he recalls.

Even the plants left on government-controlled land have worked in survival mode since.

In 2021, the last year before the invasion, the mining and metals complex still accounted for more than a third of all exports and accounted for up to 12% of GDP, rising above 40% of regional output in Zaporizhzhia, Donetsk and Dnipropetrovsk oblasts.

The strikes that finished the furnaces

The decisive blow came from the air. Since August, a huge number of missiles, both ballistic and cruise, have targeted the plants, and practically all the blast furnaces still working were destroyed, he adds.

Ukraine’s largest steelworks, ArcelorMittal Kryvyi Rih, began a cold shutdown after four Russian attacks that killed six workers and halted primary steel production.

Kalenkov’s figure differs from one his association gave earlier: Ukrmetalurhprom reported that Ukraine’s steel output fell 4.7-fold year on year in September, to 131,000 tons, NV reported. It is not clear whether Kalenkov meant September or a narrower measure.