Since the beginning of 2023, there has been a gradual recovery in the market for metal products for machine engineering in Ukraine, leading to an increase in demand by 25-30%. According to analysts’ estimates, the Ukrainian market for rolled metal products for machine engineering is expected to reach approximately 140,000-145,000 tons in 2024.
This is reported by Finway
Main Factors Driving Demand Growth
The primary factor contributing to the growth in demand for steel in machine engineering is the development of the defense industry. This sector is actively investing in new equipment and attracting leading foreign corporations to establish production facilities in Ukraine, resulting in the formation of joint ventures.
Situation in Other Segments of Machine Engineering
In terms of other segments of machine engineering, recovery is occurring at a much slower pace. There is a noted decline in demand from the railway and agricultural machine engineering sectors, as well as from manufacturers of hydraulic equipment. However, this year, a continuation of the recovery in machine engineering and an increase in metal product sales of at least 15% is forecasted. Overall, Ukrainian machine engineering has immense potential: estimates suggest that the Ukrainian defense industry could produce goods worth $35 billion per year, while the current actual volume is only $14 billion.