The LaGrand Team using the Steel Intelligence Solution

From the Field to the Dashboard – Built by Experts, for Experts.

Discover What's Really Happening in the Steel Industry

Use the AI-powered search engine to analyze production activity, market trends, and news faster than ever before.

Try the Free AI Search Engine

Russian Steel Market: German Pressure on Imports Amidst Activity Shifts

Amidst German calls to end Russian steel imports, as reported in “Klingbeil will kriselnden Stahlherstellern helfen,” “German Vice Chancellor calls for early termination of imports of steel slabs from Russia,” and “German vice chancellor calls for swift end to Russian steel slab imports,” satellite data reveals fluctuating activity levels at key Russian steel plants. These calls for import restrictions, particularly concerning slabs processed within the EU, come as activity levels at observed plants reflect varying degrees of stability and decline. It is currently impossible to determine to what extend, if any, those calls have already affected activities in Russia.

Bar chart and satellite map of steel production activity in Russian Federation

The mean steel plant activity across the observed plants in Russia has fluctuated, peaking in July and August before declining in September and October. Uralwagonsawod steel plant shows a consistent decline in activity from May (43%) to October (33%). Iron Ozone 32 steel plant in Sverdlovsk, a primarily EAF-based mill producing semi-finished products for the energy sector, shows relatively stable activity, starting at 55% in May and decreasing to 52% in October. Severstal Cherepovets, a major integrated steel plant with both BOF and EAF production, experienced a decrease in activity from 37% in May to 22% in October, with a peak of 40% in July and August.

Uralwagonsawod steel plant, located in Rostov and primarily serving the defense sector, shows a consistent decrease in activity between May and October. No direct connection to the cited news articles can be established based on the provided information.

Iron Ozone 32 steel plant, located in Sverdlovsk, displays relatively stable activity. It is EAF-based, producing billets for the energy sector. No direct connection to the cited news articles can be established based on the provided information.

Severstal Cherepovets steel plant, a large integrated plant in Vologda producing a range of semi-finished and finished products, experienced a decline in activity from May to October. Given the German Vice Chancellor’s push to end Russian steel slab imports, as reported in “German Vice Chancellor calls for early termination of imports of steel slabs from Russia,” the observed decrease at Severstal, a slab producer, could potentially indicate an anticipation of reduced export opportunities to the EU, however, it is impossible to make a definitive determination from the given information.

Evaluated Market Implications:

The reported pressure from Germany to halt Russian steel imports, particularly slabs, as seen in “Klingbeil will kriselnden Stahlherstellern helfen” and “German vice chancellor calls for swift end to Russian steel slab imports,” coupled with the observed activity decrease at Severstal Cherepovets steel plant, a major slab producer, presents potential supply disruptions for EU steel buyers relying on Russian slabs processed within the EU.

Recommended Procurement Actions:

  • EU-Based Steel Buyers: Immediately evaluate and diversify slab supply chains away from sources dependent on Russian feedstock to mitigate potential disruptions stemming from stricter import sanctions. Given that Severstal is a supplier of slabs, evaluate the feasibility of alternative arrangements. Buyers should explore alternative suppliers and potentially accelerate qualification processes for new sources.
  • Market Analysts: Closely monitor EU policy decisions regarding Russian steel imports and track activity levels at key Russian steel plants, especially Severstal Cherepovets, to assess the evolving impact of potential trade restrictions. A continued decline in activity at Severstal Cherepovets, along with further policy announcements, would strengthen the evidence for an import-driven impact on Russian steel production.