The enterprise is loaded at 30% of its metallurgical and 70-75% of its mining capacities
PJSC “ArcelorMittal Kryvyi Rih” (AMKR), which is actually located in the frontline zone, is facing significant challenges due to the war. Frequent shelling of the city and problems with power supply significantly affect production processes. In the first quarter of 2025, the enterprise plans to operate only one blast furnace due to the difficult economic and security situation. This was stated by the CEO of “ArcelorMittal Kryvyi Rih” Mauro Longobardo in an interview with “Interfax-Ukraine”.
In the middle of the year, thanks to favorable conditions, the enterprise was able to return to using 50% of its metallurgical capacities (working with two blast furnaces), but currently their load is 30%. By the end of the year, AMKR expects to produce about 1.6 million tons of metal products, of which 1.15 million tons are finished rolled products, as well as smelt 2.16 million tons of pig iron. The utilization rate of mining capacities is stable at 70-75%, which allows for the monthly production of 650-700 thousand tons of iron ore concentrate with an iron content of 65%.
The production plan for 2025 provides for a decrease in production volumes compared to the pre-war years. According to the CEO of AMKR, in the first quarter the company will be able to support the operation of only one blast furnace. This is due to high electricity tariffs and its periodic unavailability due to attacks on Ukraine’s energy infrastructure.
“Our products have a high cost due to inflated electricity tariffs. This makes them less competitive in the market,” Longobardo noted.
Problems with power supply also affect the smooth operation of equipment. Metallurgical facilities are sensitive to voltage drops, and shutdowns can lead to serious damage to equipment.
Despite the difficulties, AMKR continues to actively export iron ore concentrate, most of which was previously used for its own steel production. Now these volumes are being exported, in particular to China.
From the second quarter of 2025, the enterprise plans to resume operation of two blast furnaces, which will allow it to reach an annual volume of 2.5-2.6 million tons of metal products. In mining production, stable indicators are planned at the level of 650-700 thousand tons of concentrate per month, if market prices remain within $ 110-120/ton.
Due to the pressure of a number of negative factors, in particular, the growth of electricity tariffs, logistics costs, the shortage of qualified personnel due to mobilization, etc., Ukrainian industry is losing competitiveness in both domestic and foreign markets. Unjustified tariff increases by state monopolies in the railway and electricity markets threaten the loss of export and tax revenues from heavy industry, and thousands of jobs in mainly frontline regions.
We would like to remind you that the increased mobilization is increasing the shortage of personnel at ArcelorMittal Kryvyi Rih. As of now, more than 3 thousand employees of the enterprise have already been mobilized into the ranks of the Armed Forces of Ukraine. In July of this year, the enterprise was forced to suspend production due to a CCC inspection, since the employee who adjusts the rolling mill and who is the only specialist on shift was taken to the CCC.
Source: https://gmk.center/
