With Russian troops approaching the city of Pokrovsk, Ukraine has halted coke extraction activities near the city, Reuters reports.
Pokrovsk Coal Mine, one of the largest coal mines in Eastern Europe, is located about 10 kilometers west of Pokrovsk. The mine provides coal for the production of coke, which plays a critical role in Ukraine's steel production and is its second largest export after agriculture.
The mine, owned by Metinvest BV, is the only source of coke production in the country. However, the ongoing fierce fighting on the eastern front and Pokrovsk's status as a strategic logistics hub for Ukrainian forces make it an important target for Russian attack.
Damage to Steel Production
According to trade data, in the first eight months of 2024, Ukraine's exports of steel products amounted to about $2 billion. Experts say that Ukraine could produce 7.5 million tons of steel by the end of the year and aims to increase production to over 10 million tons in 2025.
However, in the event of the loss of Pokrovsk, steel production is expected to decline by 2-3 million tons per year. This could affect not only the country's export revenues but also the global steel supply chain.
The uncertainty over the Pokrovsk mine, which is vital for Ukraine's steel industry, once again reveals the deep impact of the war on the industry.
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