Metinvest Group is considering the construction of electric arc furnaces (EAFs) for steelmaking with a capacity of 3.5-3.8 million tons per year, as it plans to increase steel output by 300,000-500,000 tons this year, according to Ivan Kovalevsky, CEO of Metinvest-Resource. The production increase will require higher scrap metal consumption, while the Ukrainian scrap market is expected to face a deficit in 2026.

Kovalevsky said scrap metal is a strategic raw material essential for maintaining steel production at Metinvest’s Kametstal and Zaporizhstal plants. Among several modernization options under consideration, the shift to electric steel production is viewed as the most promising. However, EAF technology requires significantly more scrap than traditional converter methods.

He noted that the absence of a long-term state policy restricting scrap exports could significantly reduce the feasibility of building new electric steelmaking capacities in Ukraine. Without sufficient domestic scrap supplies, such projects would become impossible. Data show that scrap procurement and deliveries to steelmakers in Ukraine increased significantly in 2024 and the first 11 months of 2025.