Ukraine’s mining and metallurgical industries are experiencing a more difficult economic situation than the country’s industrial sector on average, according to conjunctural assessments for November 2025. The balance of responses assessing current order volumes stood at minus 53% in metal ore mining and minus 46% in metallurgy, compared with minus 36% for industry as a whole, indicating a stronger prevalence of negative sentiment in these sectors.
Despite the downturn, companies in mining and steel did not expect major changes in production volumes over the following three months. However, guaranteed capacity utilization continues to decline. Since the beginning of 2025, the order backlog at steel enterprises has fallen from 2.5 months to 1.9 months, while in metal ore mining it dropped from 3.2 months to 1.8 months. By contrast, the average backlog across Ukrainian industry in November exceeded four months.
Labor market expectations also point to mounting pressure. In November, the balance of responses on expected employment changes over the next three months was minus 53% in metal ore mining, compared with minus 11% in metallurgy and minus 7% across industry, signaling a high risk of workforce reductions in the mining segment.
Investment expectations mirror this trend. The balance of responses regarding future investment was minus 20% in metal ore mining and minus 5% in metallurgy, both well below the industry-wide average of 4%, suggesting weaker investment prospects for 2026.
Industry representatives cite several factors behind the deterioration, including declining global raw material prices, high electricity tariffs that have already forced some operations to suspend activity, and reduced output at Ferrexpo linked to delayed VAT reimbursements.
Under wartime conditions, mining and steel companies are prioritizing the maintenance of existing production capacities rather than expansion. With steel prices remaining low on global markets, companies report limited financial capacity for long-term investment, while surveys show that even medium-term business planning has become increasingly difficult.
