Russia is the world’s second largest exporter of steel and carbon steel. Since 2018, Russia’s annual steel exports have remained at around 35 million tons. In 2021, Russia will export 31 million tons of steel, the main export products are billets, hot-rolled coils, carbon steel, etc. Ukraine is also an important net exporter of steel. In 2020, Ukraine’s steel exports accounted for 70% of its total output, of which semi-finished steel exports accounted for as much as 50%. In 2021, Russia and Ukraine exported 16.8 million tons and 9 million tons of finished steel products respectively, of which HRC accounted for about 50%. The total export volume of finished steel products from Russia and Ukraine accounts for about 7% of the global trade volume, and the export of steel billets accounts for more than 35% of the global trade volume.
A futures analyst of Ruixiang Steel Group told reporters that with the beginning of the conflict between Russia and Ukraine and sanctions against Russia by European and American countries, Russia’s foreign trade has been hindered, and Ukraine’s ports and transportation are also very difficult. The main steel mills and coking plants in Ukraine are out of safety considerations. , basically operating at the lowest efficiency, or directly shutting down some factories. The steel production of Russia and Ukraine has been affected, foreign trade has been blocked, and the supply has been vacuumed, which has caused a shortage in the European steel market. The flow of Russian and Ukrainian steel exports in North America, Asia and the Middle East has been affected. Turkey and India’s steel and billet export quotations the rapid rise.
“The current situation in Russia and Ukraine is moving towards easing, but even if a truce and a peace agreement can be reached, the sanctions against Russia are expected to last for a long time, and the post-war reconstruction of Ukraine and the resumption of infrastructure operations will take time. Today, the tight steel market in Europe, the Middle East and North Africa is expected to continue. Europe, the Middle East and North Africa needs to find alternative imported steel products. With the strengthening of overseas steel prices, the price of steel exports has risen, which is an attractive cake. India is staring at this piece of cake. India is actively striving for a settlement mechanism in rubles and rupees, buying Russian oil resources at low prices, and increasing exports of industrial products.
However, China has a carbon steel and stainless steel export supply chain with more mature technology and more competitive prices. Shandong Ruixiang Steel Group is increasing the production lines of carbon steel plates, carbon steel coils, and carbon steel pipes to deal with this incident.