Cheap Steel Exported From Ukraine and Russia Floods World Markets


The increased steel export volumes from Russia and Ukraine have flooded international steel market, which had already been struggling on account of surplus Chinese exports. The steel makers in Asia are reportedly facing immense pressure due to increased imports of cheap steel from Ukraine and Russia along with China.

The demand for steel yet has shown signs of strength. The steel prices have already reached the weakest level in the past five years. The prices which reached the 2009 low are likely to decline further as the growing cheap imports of steel from Russia and Ukraine. According to Kalyani Steel, an Indian steelmaker, the future of the industry looks worrying as customers demand further huge cut in prices. With steel prices plunging to new low, the steel producers in the country find it hard to survive, the company stated.

According to CRU estimates, the steel exports by Ukraine and Russia have totaled 46.4 million tonnes in the entire year which is almost half the steel exports of China during the year. The Chinese steel exports during 2014 have totaled 93.78 million tonnes.

The World Steel Association monthly production statistics indicate that the total crude steel production by Russia was up by 6.0% from 5.781 Million tonnes in January 2014 to 6.130 Million tonnes in Jan 15th. However, on a year-on-year comparison, Ukraine’s total crude steel output declined sharply by 22.2% to 1.874 Million tonnes in Jan 15th compared with the output of 2.506 Million tonnes during Jan 14th.

The rising steel exports from Ukraine and Russia may impact the global steel prices negatively.