Posted on 27 Jan 2026
ArcelorMittal Kryvyi Rih (AMKR) will be forced to shut down its rolling department's blooming mill in the second quarter of 2026, the company tells Kallanish.
“This decision is not an easy one, but it is objectively determined by the current economic and market circumstances in which the company operates during a full-scale war,” the company notes. “The key factor was the European Commission's decision to introduce the cross-border Carbon Adjustment Mechanism (CBAM) from 1 January 2026, without any exceptions or transition period for Ukrainian producers.”
This effectively means the loss of the European market for a significant portion of Ukrainian metallurgical products, which critically impacts production volumes and the utilisation of individual units, AMKR notes.
According to the company, after the full-scale Russian invasion began, ArcelorMittal Kryvyi Rih made significant efforts to reorient its sales to the EU market, essentially building it from scratch under extremely difficult conditions.
“However, the introduction of the CBAM, without taking into account the military realities in Ukraine, negated these efforts. In the absence of a stable European market, the company does not have a sufficient volume of orders to ensure the operation of the blooming mill both today and in the medium term," it adds.
AMKR cites the extremely high cost of electricity in Ukraine as an additional and significant factor in its decision. Production costs have increased significantly due to constant attacks on the energy infrastructure, electricity shortages, and the need for imports at high prices, further compromising the economic viability of the blooming mill, the enterprise claims.
“Since the start of the war, the cost of electricity for industrial producers has more than doubled. Compared to 2024, when the company requested the government to urgently develop measures to curb rising electricity prices and support the mining and metallurgical complex, the price has increased from $135/MW to $210/MW in January 2026,” it says. “This makes production, particularly the operation of the blooming mill, economically unviable.”
AMKR increased its crude steel production in 2025 despite the ongoing Russian invasion of Ukraine and operating at a lower capacity.
Source:Kallanish
