In the first seven months of 2024, imports of finished metal products from Ukraine to Poland reached 627,000 tons, which is 56% more than in 2023.
A reasonable question arises: where do Ukrainian producers get electricity for such energy-intensive production? Rumors about the destruction of the Ukrainian energy system by 50-80% call into question the stability of their supplies.
Polish steelmakers hope that Ukraine will focus on the domestic market for restoration, otherwise competition with Ukrainian steel will become too tough. Low demand for metallurgical products in Poland leads to financial problems, and increased imports from Ukraine only aggravate the situation.
Mirosław Motyka, President of the Polish Chamber of Commerce and Industry of Steel, mentions that import growth is observed in all categories, especially in rolled products – by as much as 65%!
Przemysław Sztuczkowski, President of Cognor, emphasizes that Ukraine has effectively captured the market for rolled steel plates and semi-finished products in Poland. He urges the government to take action, proposing to consider quotas for products from Ukraine for individual EU countries.
Ukraine occupies a leading position in steel supplies to Poland outside the EU, maintaining second place after Germany. Increased competition from Ukrainian producers may hinder the recovery of profitability for Polish companies, which will affect the stability of the entire steel sector.
The CEO emphasizes that investments by Ukrainian producers in plant modernization can have a significant impact on the Polish steel industry, which is facing serious challenges in decarbonization.
It is also important to note that some Ukrainian steel products are sent from Poland to other European countries, where they are used to manufacture weapons supplied to the Ukrainian Armed Forces.
Thus, the Ukrainian metallurgical industry not only continues its work, but also has the potential to increase production volumes, despite the attacks on the energy infrastructure by the Russian Armed Forces.
