Ukrainian Metinvest will take its place in the green future of Europe

Ukrainian steel and mining group Metinvest will be a leading player in the country's recovery as well as a key supplier to the European Green Revolution, CEO Yuriy Ryzhenkov said at the Made in Steel exhibition in Milan.

“Progress in low-carbon steel production in Europe is phenomenal,” Ryzhenkov said, adding that this could give steel an edge over other products such as aluminium. Metinvest is the largest iron ore producer in Ukraine.

Ryzhenkov noted that the Ukrainian government's plan to rebuild the country includes developing clean energy sources, a strategy that existed before the Russian invasion but is now even stronger and means he sees the company as part of a European supply chain.
“I see no other way for Ukraine but to be part of the European market,” Ryzhenkov said.

“For this project, we need to further decarbonise our energy sources, although most of our mix is ​​already largely clean energy based: 65% nuclear, 10-15% renewables and 10% hydrogen, and we we need to build a new pellet plant or upgrade the one we have,” he told S&P Global Commodity Insights on the sidelines of the event.

The Platts 62% iron ore index was valued at $107.50/dt CFR North China on May 10, up $1.50/dt dm from the day's data. Platts is part of S&P Global Commodity Insights.

According to Ryzhenkov, Metinvest's coking coal mines in the US and facilities in the EU and UK gradually transitioned into stand-alone businesses while the group continued to support them by providing operational, financial and transactional expertise.

The Italian division of Ferriera Valsider and Trametal, which previously rolled slabs from the Ukrainian site of Azovstal, entered the open market, buying materials from the Middle East, Brazil and the UK.

Rapid supply chain diversification and logistics adjustments, as well as a market recovery, have helped Metinvest cut its losses, even as the war with Russia damaged the group's Avdiivka and Mariupol facilities and fell into Russian hands.

Ryzhenkov noted that "due to certain circumstances, we stopped our plan" to build a new plant in Italy, but "we are looking for an opportunity to build a new rolling mill in Italy."