The Ukrainian international mining and metallurgical company Metinvest suspends production at two mining and processing plants in Krivoy Rog from July 1, and also reduces the work of Kametstal, according to a company press release..

The economy of the region will suffer significantly, since the mentioned enterprises are the largest local employers and taxpayers. Currently, Metinvest's management claims that it will involve thousands of employees to the maximum in carrying out repairs and tidying up the territory at the aforementioned assets while maintaining the main income. True, the management emphasizes that it is still impossible to plan further than a month in advance..

The main reasons for the suspension of the extraction of raw materials and the operation of the steel plant, changes in logistics routes and? supply chains, the cost of delivering products to end consumers has also increased. Stockpiles of iron ore and steel products accumulated throughout the supply chain, and Metinvest's products crossed the EU border with significant delays.

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Also, the cost of production of steel products increased due to high prices for energy carriers (including natural gas) and raw materials, which was aggravated by weak demand for steel in the domestic market.. Moreover, steel prices declined globally amid falling demand for steel and iron ore..

Earlier it was reported that the United States would stop part of the duties on steel imports from Ukraine.. The metallurgical industry is of great importance for the economy.