Russia Steel Exports Analysis, May 2019

According to World Steel Association, Russia’s crude steel production recorded at 5.95 MnT during May’19 as against 5.6 MnT in Apr’19.

Iron ore exports down 22% in May’19: Russia iron ore export sentiments recorded at 1.71 MnT in May’19, down 22% as against 2.2 MnT in Apr’19. On yearly basis, exports fell marginally as compared to May’18 exports at 1.72 MnT.

Ukraine stood the largest importer in May’19 at 0.67 MnT, fell 12% M-o-M as against 0.76 MnT in Apr’19. China imports picked up to 0.30 MnT. Chinese imports increased for the month amid global material availability constraints, increased demand and falling port inventories. UK imports depicted rise to 0.18 MnT followed by Turkey at 0.11 MnT.

For CY19 (Jan-May), Russia iron ore exports recorded at 9.61 MnT, up compared to 7.05 MnT in CY18 (Jan-May’19).

Coal exports have increased 6% M-o-M in May’19, post its hefty fall recorded in Apr’19. Data provided by Russian customs indicates that the country has exported 16.5 MnT coal in May’19 as against 15.57 MnT in Apr’19, supported by an improved coal intake from South Korea, Japan and Ukraine.

Still the country had witnessed weaker y-o-y exports only for the first time in past 4 months, as coal volumes in Jun’19 had fell 8% from 17.97 MnT recorded in May’18.

During the first 5 months of CY19 (Jan’19-May’19), Russian coal exports have reached 86.44 MnT, up 9% Y-o-Y from 79.16 MnT in Jan’18-May’18 period.

Strong Asian demand for Russian coal, coupled with new additions to mining capacity and expansions in rail and port infrastructure, are some of the factors that have boosted Russian exports this year.

Scrap exports showed a slight decline in May’19. The country exported 0.38 MnT of ferrous scrap in May, dropping by 7 % M-o-M as against 0.41 MnT in Apr’19. On yearly premises, scrap exports decreased by 37% Y-o-Y as against 0.61 MnT of exports recorded in May’18. South Korean steelmakers continued booking Russian scrap in healthy quantity amid price competitiveness with the global levels. While the confirmation on the proposed restriction on Russian scrap exports with quotas is still awaited.

Country wise – Turkey remained the largest importer increasing its share in total Russian scrap exports to 60%, as it imported 0.23 MnT in May’19, against 0.20 MnT in Apr’19, observing a rise of 15% M-o-M. South Korea remained at 2nd largest importers’ position with 0.08 MnT almost stable against the last month, with a share of 21%. Other top scrap importers were Belarus (0.02 MnT, down 60% M-o-M) and Spain (0.01 MnT, unchanged M-o-M) with 5% and 3% of share each respectively

Billet exports- Russia, registered a fall in billet exports of about 8.94% M-o-M in May’19. As per custom data maintained by SteelMint stats, the nation has exported around 1.12 MnT billet in May’19 against 1.23 MnT in Apr’19. Inline on yearly basis, exports decline by 18.24% in May’19 as against of 1.37 MnT in May’18.

Taiwan has imported approximately 28.57% (0.32 MnT) billet from Russia and maintains the top number in May 2019, followed by Belgium 19.64% (0.22 MnT) & Mexico 9.82% (0.11 MnT). Taiwan was imported around 22.88% (1.47 MnT) of the total billet exported by Russia in the CY19 (Jan-May).

Inline Sponge iron exports decline by 56.5% M-o-M to 0.13 MnT in May’19 as against 0.29 MnT in Apr’19.

While Pig iron exports have registered an incline of 90.6% M-o-M in May’19 at 0.42 MnT as against 0.22 MT in Apr’19. US remains the largest buyer of Russian Pig iron with 0.17 MnT. During Jan-May’19, US imported about 0.85 MnT (45.24%) Russian pig iron, followed by Italy at 0.35 MnT (18.67%) & Turkey at 0.29 MnT (15.57%).

Finish long exports- Nation’s finish long export recorded at 0.30 MnT in May’19, slightly fall by 1% as compared to Apr’19.

On yearly basis, exports recorded gain of 12.2% in May’19 as against of 0.27 MnT in May’18.

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

Finished flat steel export drops 5% M-o-M in May’19- Russian flat steel exports witnessed decline by 5% in May’19 to 0.78 MnT as compared to 0.82 MnT in Apr’19. Shorter working days in Russia and other CIS nations on account of holy month of Ramadan which is scheduled from 5 May’19 till 4 June’19 resulted to slowdown in trade activities during this month.

Meanwhile Russia majorly exports flat steel to Turkey where demand continued to remain lacklustre. These factors collectively resulted to decline in Russian finish flat steel exports in May’19.

However on yearly basis the same plunged by 24% in May’19 compared to 1.03 MnT in May’18.

During first five month (Jan-May’19) nation’s flat steel exports stood at 3.95 declined by 20% in comparison to 4.95 MnT in (Jan-May) CY’19.

Ferro alloys exports remain stable in May’19: Russian Ferro Alloys exports stood at 0.07 MnT in May’19. Ferro Silicon exports were down by 25% both in M-o-M and Y-o-Y basis. Ferro Chrome exports however rose from 0.02 MnT in Apr’19 to 0.03 MnT in May’19. Ferro Manganese exports remained stable at 0.01 MnT in May’19 as compared to previous month. Meanwhile, Silico Manganese exports were reduced to significant levels.

Source: SteelMint Stats
Quantity in MT