Polish Trade Unions Demand an Embargo on Ukrainian Steel: Positions of the Parties and Market Impact

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Polish Trade Unions Demand an Embargo on Ukrainian Steel: Positions of the Parties and Market Impact

Polish industrial trade unions have called on the government to impose a 12-month embargo on the import of Ukrainian steel. They claim that Ukrainian producers create “unfair competition” and displace local products from the Polish market.

This is reported by Finway

Arguments of Polish Trade Unions and Ukraine’s Response

Polish associations insist that the increase in imports of Ukrainian steel negatively affects the local industry. However, representatives of the Ukrainian metallurgical sector categorically reject these accusations. They explain that the volumes of supplies remain lower than the levels of 2021 and do not pose a threat to Polish industry.

According to Eurostat, from January to July 2025, the volume of Ukrainian steel exports to Poland increased by 19% compared to the previous year. However, Ukraine’s share in the import structure is only 14.7%, while over a quarter of imported steel comes from Germany.

State of the Industry and Economic Indicators

President of the association “Ukrmetallurgprom” Oleksandr Kalenkov is convinced that the Polish industry is trying to shift its own problems onto Ukrainian competitors. He notes that high electricity prices and the use of cheap Russian raw materials by European companies exert significant pressure on Polish enterprises.

Poland is trying to find someone to blame. Their problems are related to high electricity prices and the fact that some European companies are still buying cheap Russian raw materials, – Kalenkov explained.

Despite the unions’ statements, the Polish steel industry is showing positive dynamics: steel production in the country increased by 8% in the first half of 2025, while rebar production rose by 6.4%.

Polish organizations emphasize that Ukrainian steel is cheaper. However, according to ArcelorMittal Kryvyi Rih, in August 2025, the cost of electricity for Ukrainian metallurgical plants was €115 per MWh, while in Poland it was €89.6. Additionally, Ukraine faces higher costs for gas and coal.

Industry experts stress that Ukrainian metallurgy has been significantly affected by Russian aggression. While Ukraine produced 22 million tons of steel in 2021, this volume decreased to 7.6 million tons in 2024.

According to estimates, restrictions on Ukrainian exports could lead to a reduction in production, increased costs, and even the shutdown of some enterprises. This could have a negative impact not only on the economy but also on the country’s defense capabilities. In 2024, the four largest metallurgical companies in Ukraine paid $780 million in taxes to the budget, accounting for 1.6% of total revenues. Together with related industries, this contribution reaches about $3 billion.

In conclusion, Ukrainian experts warn that export restrictions will not solve the problems of Polish industry but may create a new crisis for Ukraine. The industry emphasizes the need to avoid repeating negative scenarios similar to the “grain” crisis.