Galvanized Steel Supply in Ukraine: How War Changed the Market in 3.5 Years

Ukraine’s galvanized steel industry has undergone the largest transformation in its independence history. Galvanized steel consumption grew by 41% in 2023 to 243,000 tons, despite the war, demonstrating critical demand for reconstruction materials. Meanwhile, 67% of galvanized steel is now imported, compared to 14% before the war, fundamentally changing supply chains and market dynamics.

Mehbud Plant, a leading Ukrainian manufacturer of fencing and facade systems, observes these changes from a unique perspective. The Kyiv-based company, specializing in galvanizing with polymer coating for anti-corrosion protection, has adapted to new market realities where quality and reliability have become critically important.

Market Catastrophe and Recovery: Shocking Numbers

The start of full-scale war caused a collapse in Ukraine’s metallurgical industry. Steel production fell from 21.4 million tons in 2021 to 6.3 million tons in 2022 — a 71% decline. The loss of Azovstal and Mariupol Metallurgical Plant named after Ilyich meant the destruction of more than a third of national metallurgical capacity.

For the galvanized steel industry, losses were particularly painful. Domestic galvanized steel production decreased by 42% in 2023 to 103,000 tons due to power outages and damage to production facilities. However, demand remained high — consumption grew to 243,000 tons, which is 41% more than in 2022.

Construction costs increased by 37% in 2023, reflecting the new pricing landscape. Regional variations show the highest increases in Khmelnytskyi region (+22%), Ivano-Frankivsk (+18%) and Volyn (+17%) regions.

New Geography of Supply: From Asia to Europe

Before the war, Ukraine was a significant exporter of metal products. Now the country has become dependent on imports: 67% of galvanized steel comes from abroad. Turkey became the largest supplier with 116,800 tons in 2023, followed by Poland (13,600 tons), Slovakia (12,700 tons) and Romania (8,700 tons).

The transformation of logistics proved equally dramatic. Sea exports through Black Sea ports decreased by 95%, forcing reorientation to land routes. Road transportation tariffs became 3-4 times higher, adding 10-15% to the cost of imported materials.

Poland became a key transit corridor — the number of Ukrainian trucks at the border with Poland increased by 34% in 2022 and 20% in 2023. Danube ports gained new significance as alternative transportation routes.

Technical Standards in Wartime: European Integration Accelerated

War accelerated harmonization with European standards. State Enterprise “UkrNDNTS” adopted over 2,000 European standards in 2024, using the “cover method” for rapid implementation.

Key changes in technical requirements include:

1. Enhanced corrosion resistance requirements: minimum Z275 (275 g/m²) for exposed applications
2. Blast resistance: new requirements for structural strength
3. Rapid installation: preference for modular systems for quick repairs
4. Extended service life: due to maintenance complexities

DSTU EN 10346 (Ukrainian equivalent of European EN 10346) establishes standards for continuously hot-dip galvanized flat steel products. Zinc coating grades Z100-Z600 correspond to 100-600 g/m² total coating mass for both surfaces.

Regional Mosaic: From Lviv to Dnipro

War created a new geography of construction in Ukraine. Western regions demonstrate the highest construction activity, while eastern regions focus on restoring critical infrastructure.

Dnipro showed record growth — new construction increased by 34% in 2023. The city became a center of internal migration and industrial recovery. Ternopil demonstrates fantastic growth of 76%, Poltava — 36%, and Cherkasy — a four-fold increase in construction projects compared to 2022.

In Kyiv, 15% fewer apartments were commissioned (Q1-Q3 2023), while in Lviv the decrease was 38%. However, the average cost of a one-bedroom apartment in Lviv increased by 12% to $58,500.

72% of total damage is concentrated in frontline regions: Donetsk, Kharkiv, Luhansk, Zaporizhzhia, Kherson and Kyiv regions.

Major Projects: From “Steel Dream” to Energy Infrastructure

Metinvest, Ukraine’s largest steel producer, launched the “Steel Dream” concept in 2023. 13 different building types with over 200 ready projects are based on three prefabricated steel elements. The project envisages using 3.5 million tons of steel for large-scale reconstruction over 5-10 years.

Galvanized steel is used in:

1. Prefabricated panels for rapid construction
2. Facade systems for durability
3. Structural elements with corrosion resistance
4. Components of underground storage and protective structures

Energy infrastructure reconstruction requires $68 billion in investments. Galvanized steel structures are critically important for:

1. Power transmission towers
2. Equipment housings for transformers
3. Protective systems for power grids
4. Local electricity distribution infrastructure

Financing and Economic Realities

Total reconstruction needs are estimated at $524 billion over the next decade — this is 2.8 times Ukraine’s expected GDP in 2024. The housing sector requires $84 billion, transport — $78 billion, energy — $68 billion.

The government allocated $7.37 billion for 2025 for priority projects, but the funding deficit is $9.96 billion. The European Fund for Ukraine provides up to €50 billion in financial support (2024-2027).

The hryvnia devaluation from 29.25 to current 41-42 UAH per dollar created significant price uncertainty. The poverty level increased from 5.5% to 24.2% of the population in 2022, affecting domestic demand for construction materials.

Practical Recommendations for Ukrainian Builders

For architects and designers:

1. Prioritize modular galvanized steel systems for rapid installation
2. Follow enhanced corrosion resistance requirements (minimum Z275)
3. Integrate blast resistance requirements into design
4. Plan for extended service life due to maintenance complexities

For general contractors:

1. Diversify suppliers between Turkish, Polish and Slovak sources
2. Factor in 10-15% additional costs for logistics of imported materials
3. Consider long-term contracts for price stabilization
4. Invest in warehouse capacity to reduce logistics risks

For developers:

1. Use government reconstruction programs for financing access
2. Consider partnerships with European suppliers
3. Implement DSTU EN standards for future European integration
4. Plan energy-independent construction systems

Conclusions: New Opportunities in Difficult Times

War has fundamentally transformed Ukraine’s galvanized steel market, creating both challenges and opportunities. A large-scale reconstruction program worth $524 billion represents unprecedented demand for high-quality, durable construction materials.

Companies that can provide European-compatible, war-resistant solutions with consistent characteristics will be well-positioned to participate in Ukraine’s reconstruction and modernization. Mehbud Plant, with its expertise in galvanizing and polymer coating, represents exactly the type of innovative Ukrainian manufacturer that can take advantage of these historic opportunities.

Accelerated harmonization with European standards, combined with growing sustainability requirements, positions the Ukrainian market as a significant opportunity for innovative galvanized steel solutions. Reconstruction is not just restoration, but a chance to build a modern, sustainable and European-integrated industry.