ArcelorMittal has permanently shut down its primary billet rolling mill at Kryvyi Rih in Ukraine, citing unsustainable losses driven by the full implementation of the EU’s Carbon Border Adjustment Mechanism (CBAM) and surging domestic power prices. The closure, effective immediately, eliminates 1.2 million tonnes/year of billet capacity and threatens further downsizing at the site if market conditions do not improve.

       The mill, one of Ukraine’s largest long-product rolling facilities, had been operating at just 35% capacity since January, when CBAM levies fully came into force for steel exports to the EU. Ukraine, once a top-10 global steel exporter, has seen its EU-bound shipments collapse by 70% since CBAM’s full implementation, as producers cannot absorb the additional carbon costs of roughly €40–60 per tonne of steel.

       Compounding CBAM pressures are record-high electricity prices in Ukraine, which have risen to €0.42–0.45/kWh—more than four times pre-war levels—due to repeated attacks on power infrastructure and limited domestic generation. ArcelorMittal Kryvyi Rih’s power costs have doubled since late 2025, making rolling operations unprofitable even at full capacity.

       “We deeply regret this necessary but painful decision,” a company spokesperson said. “The combination of CBAM costs, crippling energy prices, and weak global demand has left our primary rolling mill economically unviable. We have built a 150,000-tonne billet inventory to supply our downstream section and bar mills, but those facilities also face closure if stocks are exhausted without a recovery in market conditions.”

       The shutdown affects approximately 800 workers, who will be offered voluntary redundancy or transfers to other parts of the Kryvyi Rih site. ArcelorMittal said it remains committed to Ukraine but will focus on higher-margin, low-carbon products and potentially scaling down primary steelmaking in favor of more sustainable EAF-based production if energy and trade conditions improve.

       Ukraine’s overall steel output fell 9.9% year-on-year in February 2026, according to worldsteel data, and further declines are expected amid widespread mill closures and export bottlenecks.