Russian steelmaker Severstal has confirmed to Russian news agency Interfax that it has stopped all exports to EU countries as its main shareholder Alexei Mordashov is included in the list of individuals on whom the EU imposed sanctions.
“Taking into account certain issues with European clients, Severstal will redirect the trade flows to alternative global markets,” an official statement reads.
In 2021, according to data from the European Steel Association (EUROFER), imports of Russian origin HRC in the EU market surpassed 2 million mt. Most of the volume came from Severstal, as supplies from the other major Russian producers, MMK and NLMK, were restricted by very high import taxes. On a monthly basis, the average HRC export volume from Severstal was around 110,000-150,000 mt, and the main buyer was the EU, due to geographical proximity and long-standing relationships with buyers. According to sources, European buyers will aim to replace the usual ex-Russia volumes with alternative sources of supply, such as the local production, of imports of Turkish or Asian origin. However, the overall volumes missing in the region will certainly create a deficit and the market will be reshaped.
Severstal’s monthly exports of HRC have accounted for less than 30 percent of its production and, according to sources, the company will now turn to its local market while also seeking options for sales and payment procedures for exports. Some market players state that, along with its larger HRC supply to its local market, Severstal will also increase its volumes of pipe, sheet and strip output, again to be sold in its local market.