ArcelorMittal, one of the world’s largest steelmakers, has resumed shipments to Russia just a month after suspending deliveries, according to business daily Kommersant reported late Monday.
ArcelorMittal removed Russian materials from its supply chain in March in response to Moscow’s invasion of Ukraine.
In May, Kommersant announced that the Luxembourg-based multinational had suspended deliveries to Russia.
But commodity market experts told the newspaper that ArcelorMittal resumed deliveries on June 10 and has so far supplied Russia with more than 77,000 tonnes of steel.
ArcelorMittal has traditionally sent steel to Russia directly from its plant in Kazakhstan, where it is sold at a reduced rate due to lower production costs and the relatively short transport distances between the two countries.
These favorable conditions are hurting the interests of ArcelorMittal’s Russian competitors, which have turned to the domestic market after Western sanctions reduced exports.
Russia produced 76 million tonnes of steel in 2021, of which 40 million was exported, mainly to Europe.
The international trade body, the World Steel Association, said Russia produced 2.3% less steel in January-May 2022 compared to the same period last year.
Russian steelmaker NLMK forecasts a 15% drop in production in 2022.