Russia Steel Exports Analysis, February 2019

According to World Steel Association, Russia’s crude steel production recorded at 5.23 MnT during Feb’19 as against 5.79 MnT in Jan’19.

Russia iron ore exports Up 23% in Feb’19 & recorded at 2.18 MnT as against 1.77 MnT in Jan’19. Total exports by the country recorded significant rise by 43% on yearly basis as compared to 1.52 MnT in Feb’18.

Ukraine stood largest importer for the month at 0.92 MnT followed by China (0.41 MnT) and Germany (0.28 MnT). Other major importers include Finland, Turkey and Slovakia. Russian exports to China increased 32% on monthly basis in Feb’19 and is expected to increase in upcoming months amidst completion of first railway bridge from Russia to China in Mar’19. The bridge is scheduled to open in July’19 and expected to bring about better export opportunities for Russia.

Russian coal exports have rebounded after falling in Jan’19, to record 64% growth during Feb’19. Data from customs shows that Russia exported 18.75 MnT coal in Feb’19 against 11.4 MnT in Jan’19. Exports were also 23% higher on the year from 15.26 MnT in Feb’18.

Russian coal has witnessed a rise in market share from Asia, where Japanese utilities are diversifying their sources of supply and South Korean new regulations are increasing demand for Russian low sulphur coal. Notably, both these country have seen their coal intake rising during the first two months of CY19.

Russian scrap exports hit almost 2 year low in Feb’19 – Russia exported 225,139 MT ferrous scrap in Feb’19, marginally down 4% M-o-M as against 233,438 MT in Jan’19. However, less clarity on the proposed scrap export ban has resulted in exports to hit almost 2 years low and observing 5th successive fall in Feb’19. Prior to this, the lowest exports recorded at 224,252 MT ferrous scrap in Mar’17.

On yearly premises, exports fell 32% Y-o-Y as against 328,607 MT ferrous scrap recorded in Feb’18. Russian scrap prices remained comparatively higher than global prices on decent domestic demand.

Turkey regained the largest importer position occupying 61% share (138,284 MT, +142% M-o-M) in total Russian scrap exports followed by South Korea (38,192 MT) and Belarus (4,629 MT) which observed a sharp fall by 28% and 96% on monthly premises respectively.

Billet exports from the top exporter – Russia, registered a slight gain of about 3.2% M-o-M in Feb’19. As per custom data maintained by SteelMint stats, the nation has exported around 1.35 MnT billet in Feb’19 against 1.31 MnT in Jan’19. On yearly basis, exports rise by 15.7 % in Feb’19 as against of 1.16 MnT in Feb’18.

Taiwan has imported approximately 20% (0.27 MnT) billet from Russia and maintains the top number in February 2019, followed by Mexico 14% (0.19 MnT) & Belgium 16.29% (0.22 MnT). Taiwan was imported around 21.16% (0.56 MnT) of the total billet exported by Russia in the CY19 (Jan-Feb).

Inline Pig iron exports have registered rise sharply by 122.8% M-o-M in Feb’19 at 0.47 MnT as against 0.21 MnT in Jan’19. US remains the largest buyer of Russian Pig iron during Jan-Feb’19 and recorded at about 0.33 MnT (48.69%), followed by Italy at 0.20 MnT (28.94%) & Turkey at 0.04 MnT (6.35%).

Russia flat steel exports drop 15% M-o-M in Feb’19 to 0.71 MnT in comparison to 0.84 MnT in Jan’19.

Russia’s major steel producer Magnitogorsk Iron and Steel (MMK) had cut its output in Feb’19 as one of its rolling lines was under modernisation. Meanwhile increased sales in domestic market lead to drop in nation’s export volumes in Feb’19.

Meanwhile Turkish government also increased its import duties on imported HRC for re-rollers to 6% from the previous duties of 3.5% effective from 1st Jan’19 which can be attributed for lower exports from Russia in Feb’19.

Whereas on yearly premises nation’s flat steel exports were down by 10% in Feb’19 which was 0.79 in the same month of previous year. During first two months (Jan-Feb)’19 country’s flat steel exports slumped by 18% to 1.55 MnT as compared to 1.89 MnT in (Jan-Feb)’18.

Country-wise Russia flat steel exports in Feb’19- Turkey being the major importer, procured 0.19 MnT of Russian origin flat steel in Feb’19 which was 0.24 MnT in previous month. Meanwhile Belarus, Poland and Uzbekistan imported 0.07 MnT of flat steel each in Feb’19. While Kazakhstan at 0.05 MnT, Latvia 0.03 MnT followed by Ukraine at 0.03 MnT and USA at 0.03 MnT in Feb’19.

Russia Finish long exports surge by 39.6 % M-o-M in Feb’19- Nation’s finish long export recorded at 301,896 MT in Feb’19, rise by 39.6% as compared to 216,290 MT in Jan ’19.

On yearly basis, exports rise by 9.6 % in Feb’19 as against of 275,504 MT in Feb’18. Kazakhstan stood as the largest Finish long unload country to Russia at 50,743 MT followed by Belarus at 34,836 MT, Taiwan at 32,465 MT in Feb’19 period.

Russian Ferro Alloys Exports dipped by 4% M-o-M in Feb’19: Exports of Ferro Silicon , Ferro Chrome and Silico Manganese were down by 7%, 9% and 11% respectively. However, exports for Ferro Manganese were remarkably high in Jan’19 M-o-M owing to the exports to Turkey, Mongolia and Italy in Jan’19. Russian Ferro Alloys Exports suffered due to significant decrease of imports from Japan. Japanese demand remained low due to the winter holidays. Meanwhile, the exports were high as compared to the previous year same period by 7% in Feb’19.

Source: SteelMint Stats
Quantity in MT