Ukraine’s Metinvest to take its place in Europe’s green future

Ukrainian steel and mining group Metinvest will be a leading player in the country’s reconstruction and also a key supplier for Europe’s green revolution, CEO Yuriy Ryzhenkov said at the Made in Steel fair in Milan.

“The progress to produce low carbon steel in Europe is phenomenal,” Ryzhenkov said, adding it could give steel an advantage over other products, such as aluminum. Metinvest is the largest iron ore producer in Ukraine.

Ryzhenkov noted that the Ukrainian government’s plan to rebuild the country included the development of clean energies, a strategy that was in place before Russia invaded but was now even stronger and meant he saw the company as part of the European supply chain, providing DRI and HBI.

“I do not see any other way for Ukraine, if not to be part of the European market,” Ryzhenkov said.

“To deliver this project, we need to decarbonize our energy sources even more, although most of our mix is already mostly based on clean energies: 65% comes from nuclear, 10-15% from renewable energies and 10% on hydrogen and we need to build a new pelletizing or modernize the one we have,” he told S&P Global Commodity Insights on the sidelines of the event.

The Platts 62% Fe Iron Ore Index was assessed at $107.50/dry mt CFR North China on May 10, up $1.50/dmt data on day. Platts is part of S&P Global Commodity Insights.

Elsewhere, Metinvest’s coking coal mines in the US and re-rollers in the EU and the UK have gradually adjusted their operations as standalone businesses, while the group has continued to support them with operational, financial and transactional expertise, Ryzhenkov said.

Italian unit Ferriera Valsider and Trametal, which used to re-roll slabs from the Ukrainian site of Azovstal, has gone into the open market, buying materials from the Middle East, Brazil and the UK.

The quick diversification of the supply chain and readjustment of logistics as well as the market’s rebound helped Metinvest to reduce its losses, even as the war with Russia saw group facilities in Avdiivka and Mariupol damaged and fall into Russian hands.

Ryzhenkov noted that “due to well-known circumstances, we stopped our plan” for a new facility in Italy but “we are looking to build a new coils mills in Italy.”

Author Annalisa Villa