Ukraine's Steel Industry at Risk as Key Mine Shuts Down Amid Russian Advance

Ukraine has halted production at its only coking coal mine in Pokrovsk due to advancing Russian forces. This threatens the country's steel industry as alternative sources and imports would increase costs. The closure could significantly slash steel production, which has already been heavily impacted by the ongoing conflict.

Ukraine's steel industry faces a critical setback as production ceases at its sole coking coal mine in Pokrovsk amid the proximity of advancing Russian forces. Industry sources confirmed the shutdown, which affects a key supplier to a sector already decimated since Russia's February 2022 invasion.

The strategic city of Pokrovsk, a logistical hub, finds itself under increased pressure. Ukrainian military analysis suggests Russian troops are within 2 km of a mine shaft. With ongoing operations halted, focus shifts to the potential need for costly coal imports as Metinvest BV, the facility's owner, remains silent on recent developments.

The impending closure spells further decline for Ukraine's steel production, predicted to drop significantly by 2025. The steel industry suffered a 70.7% output plunge in 2022, and new threats loom as Russian forces advance, potentially capturing facilities in nearby villages. An import reliance could exacerbate economic strains as Ukraine navigates its third year of conflict.

(With inputs from agencies.)