MINEX Forum

Tag: steel industry

  • Uzbekistan to Establish Project Office to Oversee Steel Industry and Scrap Metal Market

    Uzbekistan to Establish Project Office to Oversee Steel Industry and Scrap Metal Market

    Uzbekistan will establish a dedicated project office under the government to oversee the country’s ferrous metallurgy sector, President Shavkat Mirziyoyev announced during a meeting on the industry’s development.

    The new office is expected to begin operations within one month. In addition, an electronic platform, E-lom, will be launched at the beginning of August to monitor the circulation of ferrous metals across the country.

    The project office will conduct daily analysis of the steel market, compile data on supply and demand for raw materials and finished metal products, and maintain digital passports for metal products. Through the E-lom platform, all transactions involving ferrous metals will be tracked in real time.

    According to the government, the new measures are designed to promote fair competition, stabilize prices and strengthen oversight of the steel sector by increasing transparency throughout the supply chain.

    Officials also highlighted the importance of improving scrap metal collection. The Bekabad Metallurgical Plant currently produces around 40% of its rolled steel using recycled scrap, while the remaining 60% relies on imported raw materials. Each year, the plant receives approximately 700,000 tonnes of ferrous scrap, but an estimated additional 500,000 tonnes remains outside the formal market, circulating through the shadow economy.

    The government expects that tighter monitoring and digital tracking will help bring more scrap into the legal supply chain, reducing reliance on imports and improving raw material availability for domestic steel production.

  • Bosnia’s Nova Ljubija Iron Ore Mine Preparing Bankruptcy Filing Amid Financial Struggles

    Bosnia’s Nova Ljubija Iron Ore Mine Preparing Bankruptcy Filing Amid Financial Struggles

    Iron ore producer Nova Ljubija in Bosnia and Herzegovina is preparing to initiate bankruptcy proceedings after its owners determined that continuing operations is no longer financially viable.

    According to local media reports, the company is currently finalising documentation and is expected to file for bankruptcy in the coming days. Suzana Gasic, deputy director of Nova Ljubija, confirmed the move, noting that prolonged financial difficulties faced by its sole customer, steel producer Nova Zeljezara Zenica, have significantly impacted the mine’s operations.

    Nova Zeljezara Zenica has reportedly been unable to settle outstanding obligations to the mining company, creating a sustained liquidity strain that contributed to the decision to seek bankruptcy protection.

    The Nova Ljubija mine employs around 600 workers and has been a key iron ore supplier to Bosnia’s steel industry. The company is jointly owned by local diversified group Pavgord and mining operator Rudnici Zeljezne Rude Ljubija.

    The situation follows a broader restructuring of steel assets in the country. In June 2025, Luxembourg-based steel giant ArcelorMittal agreed to sell its shares in steel plant operator ArcelorMittal Zenica and iron ore producer ArcelorMittal Prijedor to Pavgord.

    Industry observers note that the difficulties faced by Nova Ljubija reflect broader pressures within the regional steel sector, including financial instability among downstream producers and shifting market conditions.

  • Poland Urges Brussels to Act Over Ukraine’s Steel Scrap Export Ban

    Poland Urges Brussels to Act Over Ukraine’s Steel Scrap Export Ban

    Poland has asked the European Commission to intervene after Ukraine introduced measures that effectively halt exports of steel scrap to the European Union, a move Warsaw warns could undermine the competitiveness of its steel industry.

    The dispute highlights growing trade frictions between the two close partners at a time when the EU continues to provide political, financial and military support to Ukraine following Russia’s full-scale invasion. While Poland remains one of Kyiv’s strongest allies, tensions have mounted over trade flows, including agricultural products, transit corridors and now scrap metal.

    From January 1, Ukraine set export quotas for ferrous scrap at zero, effectively blocking shipments of a key input for electric arc furnaces. Poland’s Ministry of Development and Technology said the restrictions are already disrupting supply chains and risk driving up costs for domestic steelmakers.

    Roughly half of Poland’s steel output is produced using electric arc furnaces, which rely heavily on scrap as their primary raw material. In recent years, Poland has been the main destination for Ukrainian scrap exports. According to the ministry, a prolonged shortage could lead to higher production costs, weaker competitiveness and a real risk of output cuts and job losses in the sector.

    Kyiv has defended the measure as a wartime necessity, arguing that limiting exports helps support Ukraine’s own steel industry. Polish industry representatives counter that the policy lowers input costs for Ukrainian producers while increasing prices for manufacturers in the EU.

    Warsaw says it attempted to avert the restrictions before they took effect. On December 18, 2025, the Polish ministry sent a formal letter to Ukraine’s deputy economy minister urging the government to reconsider plans that would block scrap exports. With no response and the zero quotas now in force, Poland escalated the issue to Brussels.

    Following the Ukrainian government’s decision, the ministry formally requested urgent intervention from the European Commission, describing the quotas as a de facto export ban. Polish officials added that the matter will also be raised during upcoming bilateral talks with Ukrainian counterparts.

  • President Tokayev Reviews Qarmet’s 2025 Results and Supports Further Development Plans

    President Tokayev Reviews Qarmet’s 2025 Results and Supports Further Development Plans

    Kazakhstan’s President Kassym-Jomart Tokayev has been presented with Qarmet’s preliminary operating results for 2025 and the key priorities of its investment program. The company reported strong positive dynamics, with steel production increasing by 22 percent over two years, coal concentrate output rising by 26 percent, and iron ore concentrate production growing by 32 percent. Over the same period, production costs were reduced by 28 percent, while the number of steel grades produced expanded from 260 to 350.

    Qarmet Chairman Andrey Lavrentyev reported on the implementation of nine major investment projects aimed at forming the country’s “steel framework” and reducing dependence on imported rolled metal products. The company is also expanding the production of new premium steel grades, including specialized products intended for the construction of nuclear power plants.

    The president was briefed on development programs for Qarmet’s coal and mining divisions, with particular emphasis placed on occupational safety and social initiatives. The company is upgrading its own medical and educational facilities, and a new collective labor agreement has been signed with trade unions. The agreement provides enhanced social guarantees for Qarmet’s workforce of 35000 employees.

    Tokayev was also informed about the creation of a large metallurgical cluster around Qarmet, enabling small and medium-sized enterprises to engage in deeper processing of raw materials. This initiative was launched jointly with the National Investment Holding Baiterek. In addition, Qarmet is carrying out systematic cooperation with machine-building plants to increase the use of domestically produced steel in manufacturing.

    Following the meeting, the president gave a positive assessment of the company’s performance and endorsed Qarmet’s proposed development plan. He stressed the importance of continuing comprehensive modernization efforts, addressing social issues, improving the environmental situation, and further expanding machine-building production.

  • Standard Chartered Arranges €132.5 Million Loan to Boost Uzbekistan’s Steel Production

    Standard Chartered Arranges €132.5 Million Loan to Boost Uzbekistan’s Steel Production

    Standard Chartered Bank has arranged a €132.5 million financing package for Joint-Stock Company “O’zbekiston Metallurgiya Kombinat” (Uzmetkombinat), Uzbekistan’s largest steel producer, to support the completion of its new Casting and Rolling Complex in Bekabad, southern Uzbekistan.

    The transaction is backed by the Islamic Corporation for the Insurance of Investment and Export Credit (ICIEC), which is providing insurance coverage to mitigate investment risks. Standard Chartered acted as Global Coordinator, Facility Agent, and Mandated Lead Arranger.

    The proceeds will finance the construction of Uzbekistan’s first facility for producing hot-rolled coils (HRCs) — a major step toward import substitution in the country’s steel industry. The new plant will supply HRCs for pipe manufacturing and construction companies, reducing costs and improving supply chain efficiency for domestic consumers.

    Uzmetkombinat employs over 8,000 people and is one of the largest industrial employers in Bekabad, a town of 100,000 residents. The company accounts for more than one-third of Uzbekistan’s ferrous metal consumption, playing a vital role in national infrastructure and industrial development.

    Desislava Radeva, Executive Director, Development and Agency Finance at Standard Chartered, said the deal demonstrates the bank’s commitment to driving sustainable industrial growth in emerging markets.

    “Steel production is a key strategic industry for Uzbekistan, and the domestic sourcing of HRCs represents a huge leap forward for the country,” she said. “This project is a strong example of Standard Chartered’s expertise in driving prosperity in some of the world’s most dynamic markets.”

    Dr. Khalid Khalafalla, CEO of ICIEC, emphasized that the project will enhance Uzbekistan’s self-sufficiency and supply chain resilience:

    “By providing insurance coverage for this facility, we are enabling Uzbekistan to expand its domestic steel capacity, reduce import dependency, and strengthen its industrial base while creating jobs and uplifting local communities.”

    Bakhodir Abdullaev, CEO of Uzmetkombinat, said the project marks a “new chapter” for the company and the country’s industrial sector.

    “The launch of the first domestic hot-rolled coil production will reinforce local supply chains and inject new momentum into Uzbekistan’s economy,” Abdullaev stated.

    This marks Standard Chartered’s second project with ICIEC in Uzbekistan, following a €160.4 million Islamic financing facility extended to Agrobank to support small and medium-sized enterprise (SME) growth.

  • Kazakh Industry Ministry Denies Role in Potential Qarmet Investment Deal

    Kazakh Industry Ministry Denies Role in Potential Qarmet Investment Deal

    The Ministry of Industry and Construction of Kazakhstan has clarified that it is not involved in preparing a potential investment agreement with Qarmet for the modernization of its steel division, citing limited jurisdiction. The ministry’s response came after an inquiry from inbusiness.kz via the e-Otinish government platform.

    In its statement, the ministry emphasized that its role is to formulate and implement policies for industry and mining, while investment agreements fall outside its scope. It advised directing questions to Qarmet directly.

    Despite reaching out to Qarmet in early March, inbusiness.kz has yet to receive answers regarding the potential deal, including whether the steel and mining company would receive tax incentives or other state benefits.

    The ministry, now led by Yersaiyn Nagaspayev, recently made headlines when Nagaspayev visited Qarmet’s facilities in the Karaganda region, one of his first official trips since his appointment.

    Meanwhile, reports indicate that Qarmet plans to secure up to 3.5billion in financing by 2028 from Chinese, international, and Kazakh banks. The company previously had a 450 million debt to former owner ArcelorMittal, partially repaid last year. In 2024, Qarmet also obtained a $350 million export loan from the Kazakh Development Bank at a 9.17% fixed rate.

    Despite claiming $200 million in monthly revenue, Qarmet has not publicly disclosed its financial statements since 2022, raising transparency concerns. The company produces 3.2M tons of pig iron, 3.5M tons of steel, and 6.1M tons of coal annually, employing 29,117 workers—though reports suggest early retirement layoffs occurred last year.

  • Metinvest Expands to Scandinavian Markets, Signs Annual Contracts with Swedish SSAB

    Metinvest Expands to Scandinavian Markets, Signs Annual Contracts with Swedish SSAB

    Since the beginning of the war, Metinvest Group has restructured its logistics and shifted focus to new markets, including Scandinavian countries. In a recent interview with FAQ Talks, Dmytro Nikolaienko, Commercial Director of Metinvest, revealed that the company has begun supplying iron ore to SSAB, a leading Swedish steelmaker, for its plant in Finland.

    “While Europe remains our primary market, with many consumers in Eastern Europe, we have successfully found new buyers for our iron ore during the war. For example, we now supply SSAB, shipping ore to their Finnish plant via Polish ports,” Nikolaienko stated. He added that SSAB has become a long-term client, with supplies secured under annual contracts.

    SSAB is one of Europe’s largest steel producers, specializing in high-strength steel and operating in over 40 countries. The company, headquartered in Stockholm, produces more than 8 million tonnes of steel annually.

    Metinvest’s mining segment saw a 39% increase in export revenue last year, reaching 2.5billion, with physical exports surging by 73, nearly $3.9 billion of which came from Metinvest and Zaporizhstal. The company now supplies iron ore, flat steel, and semi-finished products to 51 countries, including newly entered markets like India, Sweden, and Norway.

    Metinvest also remains the largest taxpayer in Ukraine’s steel industry, contributing UAH 19.8 billion (61% of the sector’s total taxes) to state budgets in 2024.

  • Global Heavy Industry Faces Fourth Year of Decline as China Shifts Economic Focus

    Global Heavy Industry Faces Fourth Year of Decline as China Shifts Economic Focus

    Global heavy industry, particularly the demand for steel and non-ferrous metals, is poised for a fourth consecutive year of decline, driven by stagnation in the construction sector and China’s transition from a supply-and-volume-based economic model to one emphasizing demand and quality. This shift, according to Stefan Borgas, CEO of global refractory supplier RHI Magnesita, requires significant structural changes in China’s financing, regulations, and investor mindset.

    China’s steelmaking capacity, currently at 1.25 billion metric tons per year, far exceeds its demand of around 1 billion metric tons. This surplus has led to record steel exports, with over 110 million metric tons shipped in 2024, the second-highest volume ever. Borgas highlighted that this excess steel is flooding foreign markets, reducing demand for refractories and related products. For instance, India’s steel demand grew by 8% last year, but production increased by only 4% due to Chinese imports.

    While the steel industry remains a key profit driver for RHI Magnesita, accounting for 65-70% of its earnings, the non-ferrous metals sector is experiencing a slowdown. Few new copper, nickel, or aluminum plants are under construction, and existing projects are not expected to advance for several years, leading to a projected weakening of RHI Magnesita’s non-ferrous business in 2025.

    In response to these challenges, RHI Magnesita is advocating for the inclusion of refractory-grade magnesite on the EU’s Critical Raw Materials list by 2026. Borgas emphasized the strategic importance of refractories, stating, “Without refractories, you cannot refine critical minerals; if somebody controls your refractories, they can stop you from making copper.”

    The company is also advancing its recycling efforts, with a goal to source 20% of its refractory inputs from secondary materials by 2030. A new laser-based, robotics-supported recycling unit, developed with Norwegian and German partners, aims to enhance the precision of sorting refractory materials.

    Additionally, RHI Magnesita is exploring greater integration into alumina sourcing following recent acquisitions. Alumina prices surged last year, peaking at 785−787 per metric ton in November 2024, before settling at $470 per metric ton in March 2025. Borgas noted that partnerships or acquisitions could help mitigate future price volatility.

    Despite global trade uncertainties, including potential tariffs under US President Donald Trump, Borgas expressed confidence in the company’s flexible global supply chain. However, he acknowledged that adapting raw materials supply to tariff expansions would be challenging.

  • Ukraine’s Steel Industry Faces Crisis After Closure of Last Coking Coal Mine

    Ukraine’s Steel Industry Faces Crisis After Closure of Last Coking Coal Mine

    Ukraine’s steel producers are scrambling for alternatives after the country’s last operating coking coal mine in Pokrovsk shut down on Jan. 13. Metinvest Group, the mine’s owner, halted operations and evacuated workers as Russian forces advanced on the Donetsk Oblast town.

    The Pokrovsk mine, valued at around $1.8 billion before the war, was the last Ukrainian-controlled source of coking coal, a critical raw material for steelmaking. With its closure, domestic steel producers must now rely on costly imports, threatening Ukraine’s global competitiveness in the industry.

    “To produce 7.5 million metric tons of steel in 2024, we would need to import 1.9 million tons of coal. We have doubts whether such quantities can be secured, and import costs will further strain steelmakers,” said Oleksandr Kalenkov, head of Ukraine’s steelmakers’ association.

    Once a global top-10 steel producer, Ukraine has slipped below 20th place since Russia’s full-scale invasion. Annual coke production plummeted from 23.7 million tons in 2013 to just 2.7 million tons in 2023, reflecting the loss of key production sites in occupied territories.

    With no immediate domestic alternative, steelmakers, including Metinvest and ArcelorMittal Kryvyi Rih, will turn to imports from Poland, Australia, and the U.S. However, the added costs—estimated at $50 per ton for Australian coking coal—will raise steel production expenses by 11%, squeezing already thin profit margins.

    Before the war, the Pokrovsk mine supplied 66% of Ukraine’s steel industry with coking coal. Finding a replacement will require nearly 3 million tons of imports, but logistical and economic challenges loom large. Poland, the primary source of Ukraine’s coke imports (85% in 2024), has limited export capacity. Meanwhile, shipping coal from overseas can take over six weeks.

    Despite the industry’s struggles, steel remains a cornerstone of Ukraine’s economy, contributing 5.7% of GDP in 2023. While production grew 21% last year, forecasts for 2025 suggest a sharp decline. Without Pokrovsk, steel output could drop to as little as 2-3 million tons, potentially cutting 1% off GDP.

    Although global coking coal prices are currently low, Ukraine’s reliance on imports will inflate costs, impacting post-war reconstruction efforts. With domestic mining investments unlikely during wartime, Ukraine may eventually be forced to import steel itself, further increasing reconstruction expenses already estimated at nearly $500 billion.

  • Ukraine Loses Vital Coal Mine to Russian Advance

    Ukraine Loses Vital Coal Mine to Russian Advance

    Pokrovsk, Ukraine – A crucial coal mine near the eastern front line city of Pokrovsk has fallen to Russian forces, marking a significant blow to Ukraine’s war effort and economy. The mine, the last operational facility in the country producing coking coal – essential for steel production – was forced to shut down after months of relentless shelling and attacks.

    Despite facing increasing danger, miners continued to work at the facility, even resorting to treacherous journeys through miles of underground tunnels to reach the coal faces. They were offered pay rises and worked under constant threat of shelling, blackouts, and drone strikes.

    The mine’s closure is expected to have a devastating impact on Ukraine’s steel industry, which relies heavily on domestically produced coking coal. Steel production is projected to plummet by over half, affecting exports, tax revenues, and the military’s ability to produce essential armor and other materials.

    The mine’s fall comes after months of Russian advances in the east, which have decimated much of Ukraine’s industrial base. The facility, which employed thousands of workers, was a vital economic lifeline for the region.

    The closure highlights the immense challenges facing Ukraine as it continues to defend itself against Russian aggression. The loss of this critical resource will undoubtedly strain the country’s already fragile economy and impact its ability to sustain the war effort.