Impact of sanctions on Russia's steel industry
Time:Fri, 23 Sep 2022 09:08:14 +0800
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The Russian-Ukrainian war lasted more than half a year. Although the Western sanctions on the Russian steel industry did not achieve the desired effect, Russian steel companies were forced to find other markets and develop new logistics routes to export steel, semi-finished products, and raw materials.
As a result, according to the World Steel Association, in the first five months of 2022, Russian steel production fell by 2.3% year on year to 31 million tons. Not only did the output drop significantly more than expected, but in terms of sales, materials destined initially for the EU had to be transferred to Turkey, China, and some Middle Eastern countries. Therefore, finding a sales market is difficult, and the price is also cut by 15-40%.
The Russian steel industry may survive Western sanctions. However, it should take time and effort to find new customers, arrange new logistics, and potential secondary sanctions by Western companies on Russian-made materials.
