Although Western sanctions on the Russian iron and steel industry did not have the desired effect, Russian steel companies were forced to look for other markets and develop new logistics routes for the export of steel, semi-finished products and raw materials.
As a result, in the first five months of 2022, steel production in Russia fell by 2.3% year-on-year to 31 million tons, according to the World Steel Association. Not only did production fall significantly more than expected, but in terms of sales, materials originally destined for the EU had to be relocated to Turkey, China and some countries in the Middle East. Therefore, it is difficult to find a sales market, and the price is reduced by 15-40%.
The Russian steel industry can survive Western sanctions. However, it will take time and effort to find new customers, organize new logistics and possible secondary sanctions from Western companies regarding Russian-made materials.
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Source: YIEH CORP.
The Impact of Sanctions on the Russian Steel Industry
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