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Ukraine's steelmakers stress as Russians advance towards crucial coal mine

As Russian forces grind their way towards the tactical supply hub of Pokrovsk in eastern Ukraine, they are also approaching a coking coal mine that fires the nation's essential steel market.

Russian troops have actually relocated to within around 12 km of Pokrovsk, overwhelming Ukraine's extended defences with greatly exceptional numbers and equipment. Countless locals have gotten away and key road and rail links to other cities run the risk of being severed.

Around 10 km west of the town centre lies a mine that produces a special kind of coal required to produce coke, an essential element in steelmaking - which is 2nd only to farming in making hard currency for Ukraine.

Metal exports were worth practically $2 billion in the first eight months of this year, according to trade information, money needed to keep Ukraine going two and a half years into Russia's. full-scale intrusion.

Oleksandr Kalenkov, head of Ukraine's steelmakers'. association, stated the loss of the Pokrovsk mine, the just. domestic source of coking coal, could trigger steel production to. downturn.

We might make up to 7.5 million metric lots of steel by the. end of the year and, for next year, we saw an increase in. production to over 10 million, Kalenkov informed Reuters.

But if we lose Pokrovsk, then ... we will be up to 2-3. million tons.

The alarming caution is a tip of how Russia's intrusion is. targeting Ukraine's economy, posturing an existential as well as a. territorial hazard.

The head of the Ukrkoks coke association, Anatoliy. Starovoit, stated Ukraine produced about 3.5 million tons of coke. in 2023 and utilized coking coal mined exclusively in Pokrovsk.

We do not know where to get coal if Pokrovsk is seized, he. told Reuters. It is difficult to bring it in by importing;. today it is not so easy to bring it in by sea.

IMPORT, EXPORT

Ukraine has several deep-water ports on the Black Sea, however. steelmakers would discover it challenging to import substantial. volumes of coal due to the fact that of military risks and since ports are. built for exports instead of imports.

To do so would likewise rise production costs for. steelmakers, Kalenkov said.

There will be imports, of course, but there will not suffice. imports.

The most likely alternative sources of supply are the United. States and African nations including South Africa, he added.

Some manufacturers have been stockpiling as a preventative measure against. possible supply disturbances.

We have changed the deficit in the local market for coal. with imported basic materials, however we maintain high reserves,. ArcelorMittal Kryvyi Rih, Ukraine's largest steelmaker, said in. a declaration. The company is part of ArcelorMittal S.A.,. a Luxembourg-based multinational steel production. corporation.

A steel market source stated manufacturers wished to find. alternative sources of coke coal from in other places in Ukraine. must the Pokrovsk mines be occupied, however that imports would. undoubtedly be needed and boost production costs, making steel. less competitive.

Ukraine produced more than 4.3 million tons of rolled steel. items in January-August 2024, of which 66% were exported. EU. countries represented 72% of the volume exported, according to. the steelmakers' union.

(source: Reuters)