Europe’s sanctions on Russia have impacted Russian exporters but worst to Europe’s Steel producers. Around 80% of semi-finished steel products are major imports from Ukraine and Russia. Ban on billet, slab, and blooms will cause to destroy the rerolling business in Europe.
Nine European companies, including steel re-rollers and traders, forwarded a letter to the European Commission on September 27, 2022, and stated a scenario that Europe’s major imports from Ukraine have stopped due to temporary production cuts in Ukraine. Russia is the alternative to fulfill the demand, but a ban on it will cause to supply shortage of
raw materials for re-rollers businesses.
Brazil, China, India, and European firms could not fulfill the demand; the mills from Iran and USA already have bookings from America and Mexico. With a considerable investment, three to four years are required to install new re-rollers and casting mills.
These sanctions will cause to affect Europe’s green transition targets, and they will increase the dependency on foreign gas. It will cause production cuts and shutdowns in the steel industry, consequently increasing unemployment and price hikes.
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