Ukraine’s defense industry is driving demand for metal products needed in mechanical engineering by 25 to 30%.

Since 2023, the Ukrainian market for metal products used in machine building has shown a gradual recovery, growing by 25 to 30% based on last year’s results. Estimates indicate that in 2024 the Ukrainian market for rolled metal used in mechanical engineering projects was approximately 140,000 to 145,000 tons.

The main driver of the growth in demand for steel in the mechanical engineering sector is Ukraine’s defense-industrial complex. The industry is actively developing; new equipment is being put into operation at many enterprises, leading foreign companies are opening production facilities in Ukraine, and joint ventures are being formed.

In contrast, other mechanical engineering segments are recovering at a much slower pace. There is less demand from railway and agricultural machinery manufacturers, as well as from hydraulic equipment producers.

This year, mechanical engineering’s recovery is expected to continue, with sales of metal products projected to increase by at least 15%. Ukrainian engineering possesses enormous potential. The Ukrainian defense industry alone can produce products worth $35B per year, compared to the $14B it produces currently.