Russia Steel Exports Analysis, April 2019

According to World Steel Association, Russia’s crude steel production recorded at 5.6 MnT during Apr’19 as against 5.79 MnT in Mar’19.

Iron ore exports: Russia iron ore exports picked for the month of Apr’19 at 2.2 MnT, up 26% as against 1.75 MnT in Mar’19. On yearly basis, exports marked sharp rise as compared to 0.25 MnT in Apr’18.

Ukraine stood as the largest importer of Russian iron ore for the month at 0.76 MnT, up two folds as against 0.36 MnT in Mar’19. China stood second largest importer at 0.29 MnT (down 43% M-o-M) followed by Slovakia at 0.25 MnT and Germany at 0.24 MnT.

Coal exports have witnessed a hefty fall of 36% on the month to 15.57 MnT, following a decline in both coking and non-coking coal shipments in Apr’19. Export volumes were, however, up 12% Y-o-Y from 13.94 MnT in Apr’18.

Traditionally, April is not a strong month for coal demand as it falls between the winter and summer power demand peaks –accordingly seaborne volumes are expected to be low. Consequently, Russian coal intake from major importers- China, Germany, Japan and Korea had come down M-o-M in Apr’19.

Exports in the first 4 months of CY19 were marked 14% higher on the year at 69.94 MnT amid a growing Asian appetite for Russian coal.

Ferrous scrap exports – Russia scrap exports showed significant rise in Apr’19. The country exported 0.41 MnT of ferrous scrap in Apr’19, rising by 49 % M-o-M as against 0.27 MnT in Mar’19. On yearly premises, scrap exports decreased by 13% Y-o-Y as against 0.47 MnT of exports recorded in Apr’18. South Korean Steelmakers including Hyundai Steel were reported to make a flurry of bookings of Russian scrap for Apr’19 delivery.

Country wise – Turkey remained largest importer with 49% share in total Russian scrap exports, as it imported 0.20 MnT in Apr’19 as against 0.18 MnT in Mar’19, observing a rise of 14% M-o-M. Another top importer South Korea witnessed a considerable growth of 44% M-o-M as it imported 0.08 MnT of scrap with a share of 20%. Other top scrap importers were Belarus (0.05 MnT, up 1070% M-o-M) and Egypt (0.03 MnT) with 1% of share each respectively.

Russian Government is expected to implement regional quotas for ferrous scrap exports from the beginning of July’19 for another six months, however, the confirmation on this is still awaited.

Billet exports- Russia, registered a slight fall in billet exports of about 13.2% M-o-M in Apr’19. As per custom data maintained by SteelMint stats, the nation has exported around 1.23 MnT billet in Apr’19 against 1.41 MnT in Mar’19. Inline on yearly basis, exports decline by 18.4% in Apr’19 as against of 1.50 MnT in Apr’18.

Taiwan has imported approximately 19.5% (0.24 MnT) billet from Russia and maintains the top number in April 2019, followed by Mexico 8.9% (0.11 MnT) & Belgium 18.6% (0.23 MnT). Taiwan was imported around 21.73% (1.15 MnT) of the total billet exported by Russia in the CY19 (Jan-Apr).

Inline Pig iron exports have registered a sharp fall of 60.4% M-o-M in Apr’19 at 0.22 MnT as against 0.56 MT in Mar’19. US remains the largest buyer of Russian Pig iron during Jan-Apr’19 and recorded at about 0.68 MnT (46.90%), followed by Italy at 0.30 MnT (20.67%) & Turkey at 0.23 MnT (15.59%).

Finish Flat steel exports- Russian flat steel exports witness marginal increase of 3% in Apr’19 to 0.82 MnT as compared to 0.79 MnT. However on yearly basis the same witness decline by 24% in Apr’19 compared to 10,85,651 MT in Apr’19.

Russian being the major exporter to Turkey witness fall in export volumes amid weakening currency Lira amid political uncertainty and bearish market sentiments prevailing in Turkey market.

Thus Russia is trying to export flat steel to other countries like Kazakhstan, Belarus and Poland.

Finish long exports- Nation’s finish long export recorded at 0.30 MnT in Apr’19, decline by 25% as compared to 0.40 MnT in Mar’19.

On yearly basis, exports slightly fall by 5.1% in Apr’19 as against of 0.31 MnT in Apr’18.

Kazakhstan stood as the largest Finish long unload country to Russia at 0.05 MnT followed by Belarus at 0.04 MnT & Lithuania at 0.02 MnT in Apr’19 period.

Ferro alloy exports: Russian Ferro Alloys Exports were higher in Apr’19 by 17% from 0.06 MnT in Mar’19 to 0.07 MnT in Apr’19. However, in Apr’19 the exports were lower by 5% as compared to the Mar’19 for Ferro Chrome. Ferro Silicon and Ferro Manganese exports were significantly up in Apr’19 as compared to the previous month, whereas, the exports of Silico Manganese increased marginally as compared to the former two commodities. Netherlands and Japan remained the top two importers from Russia in Apr’19.

Source: SteelMint Stats
Quantity in MT