European factories prepare to take advantage of growing deficit from Ukraine

Mainly producers of HRP hot rolled flat products, want to take advantage of the Ukrainian crisis, which threatens the subsequent lack of HRP supplies, and insist on a significant increase in production. At the same time, it was Europe that strengthened the motivation of Ukrainian metallurgical companies to reorient their supplies to the west.

Major Italian manufacturers and service centers have already targeted price increases in the € 30-50 per tonne range. The fact is that the field of application of hot-rolled plates is quite large, from the pipe industry and construction to the automotive industry and shipbuilding. At the same time, Russian-made HRC on the market may not be enough. Most of the Russian factories are focused on the domestic market to meet the fall demand. The Asian market has little to offer Europe.

The unstable situation in Ukraine also gives Russian metal companies a chance to improve their positions. The difficult situation in southeastern Ukraine has led to the suspension of operations at some local steel mills and a reduction in imports to Russia. The reduction in imports of Ukrainian products to Russia amounted to 31 percent compared to last year.

Large enterprises in the southeastern territories are either in a combat zone, or the supply of raw materials to them is difficult. Among them are the Alchevsk Iron and Steel Works located in the city of Alchevsk and the MMK im. Ilyich of the city of Mariupol. It was these enterprises that carried out the largest deliveries of Ukrainian products to Russia. Perhaps supplies from Zaporizhstal to Russia may also be suspended due to Kiev's support for sanctions against Russia.