ArcelorMittal Kryvyi Rih announced on March 16 that it will shut two of its rolling mills in Ukraine, a decision that follows the earlier closure of its blooming mill on March 11. The company said the shutdowns are a direct response to the severe energy crisis caused by Russian strikes on Ukraine’s power grid and the high costs of complying with the European Union’s Carbon Border Adjustment Mechanism (CBAM).
The energy crisis has driven industrial electricity prices to more than double since the start of the war, reaching as high as $210 per megawatt‑hour in January 2026. Coupled with CBAM, which imposes an estimated $60‑$90 per metric ton cost on Ukrainian steel exports, the company’s operating costs have risen sharply, eroding margins and forcing a reassessment of its production mix.
CEO Mauro Longobardo explained that the company was “forced to take a number of crisis measures aimed at achieving financial viability and increasing operational efficiency.” He added that the blooming mill would “probably be executed at the end of May” because its ownership structure results in $50‑$60 higher costs per ton, a level the company cannot sustain under current conditions.
Financially, ArcelorMittal Kryvyi Rih has been operating at a loss, with the CEO projecting at least $150 million in losses for the first quarter of 2026. The shutdowns are expected to reduce production capacity and may lead to cumulative job cuts that could reach 3,400 employees, further tightening the company’s financial position.
The closures will also affect the company’s ability to serve local and regional customers, as the two rolling mills are key suppliers of flat‑rolled steel to the Ukrainian market. While the company has not yet outlined a replacement production plan, the decision signals a significant shift in its operational strategy and underscores the broader impact of the war and EU regulatory changes on Ukrainian steel producers.
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