Russian producers look to Asian markets for iron and steel exports
Russian ferrous metal exports to the United States plunged to $0.6 million in July from $201 million the previous month, and more than $1 billion in the first half of 2022, the Russian business daily reported on Monday. RBK, citing US Census Bureau data.
In June, ferroalloys made up the lion’s share of ferrous metal exports to the United States, which amounted to $112.5 million, along with semi-finished iron and steel products, worth of $88 million. In July, shipments fell to $0.4 million and zero respectively.
Last year, US imports of Russian ferrous metals, including cast iron, iron, steel and rolled metal, amounted to $2.77 billion, an average of $230 million per month. At the time, the United States accounted for nearly 9% of all Russian ferrous metal exports.
In April, the Group of Seven Nations revoked Russia “most favored nation” commercial status in response to the conflict in Ukraine. The status guaranteed low tariffs on Russian products sold around the world since 2012.
At the end of June, Washington published its final list of Russian products subject to 35% import duties under Ukraine-related sanctions. Items include steel and several types of steel products.
The prohibitive costs have prompted Russia to reorient itself towards alternative markets. In June, the list of top importers of Russian ferrous metals included Turkey, which bought products worth $546 million.
China dramatically increased its purchases of Russian iron and steel, from $163.5 million in June to $337.4 million in July, according to UN Trade and Administration data. General of China Customs. In July 2021, Beijing only imported $84.5 million of Russian ferrous metals.
Mexico, Taiwan, Middle Eastern countries and India are also believed to be becoming major buyers. In August, the Russian Ministry of Commerce reported that the share of Asian states in metal exports exceeded 50%, compared to 10-20% previously. However, Russian companies must sell metals at deep discounts of 25% or more, according to Fastmarkets data, cited by the media.
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