Published on December 19, 2024
From January to October 2024, the European Union (EU) imported a significant volume of metallurgical raw materials from Russia, totaling 4.7 million tons. These imports, primarily semi-finished products, direct reduced iron, and pig iron, were valued at €2.24 billion. This article delves into the details of these imports, the main consumer countries, and the broader implications for the EU and global markets.
Breakdown of Imports
Semi-Finished Products
Most of the imports were semi-finished steel products, including slabs and billets. In the first ten months of 2024, the EU imported 2.68 million tons of these materials from Russia, a slight increase of 0.6% year-on-year. The value of these semi-finished products amounted to €1.37 billion. The largest consumers of Russian semi-finished steel within the EU were:
Belgium: 1.03 million tons (+2.2% year-on-year)
Italy: 636.39 thousand tons
Denmark: 423.04 thousand tons (+5.7% year-on-year)
Czech Republic: 392.05 thousand tons (+13.5% year-on-year)
Pig Iron
Pig iron accounted for a substantial portion of the imports, with 1.03 million tons shipped to the EU. The revenue from these imports amounted to €420.3 million. The primary recipients of Russian pig iron were:
Italy: 768.91 thousand tons
Latvia: 147.72 thousand tons (+94.2% year-on-year)
Ferroalloys and Other Materials
Imports of Russian-made ferroalloys increased significantly, with 55.95 thousand tons imported in January-October 2024, representing a 41.4% increase compared to the same period in 2023. The cost of these imports was €127.34 million (+17.6% year-on-year). The Netherlands accounted for over 80% of these supplies, importing 42.89 thousand tons (+47% year-on-year).
Additional materials imported included 37.2 thousand tons of scrap, costing €21.03 million, and 9.36 thousand tons of iron ore, valued at €1.33 million. Direct reduced iron imports reached 889.6 thousand tons, costing €300.63 million during this period.
Market Dynamics and Sanctions Impact
Despite ongoing sanctions, the EU’s dependence on discounted Russian steel products remains notable. Russian producers offer competitive pricing, making their products attractive to EU buyers. Furthermore, the sanctions packages have not fully banned such imports, allowing continued trade. For example, the European Commission eased restrictions on slab imports from Russia, which could lead to similar leniencies for pig iron imports in the future.
Potential for Ukrainian Competition
As Ukraine moves closer to EU membership, there is potential for Ukrainian producers to replace Russian steel imports in the European market. Ukraine’s strategic position and growing capabilities in the steel industry make it a viable alternative supplier. This shift could reduce EU dependence on Russian steel and align with broader geopolitical and economic objectives.
Conclusion
The import of Russian metallurgical raw materials into the EU from January to October 2024 highlights the complex interplay of market dynamics, geopolitical factors, and economic strategies. While the EU continues to rely on discounted Russian steel products, the potential for Ukrainian competition looms. The ongoing evolution of these trends will shape the future of steel trade within the EU and its relationship with major global suppliers.
Leave a Reply