Conditions for Ukrainian pig iron in the US are better than in Europe, – Metinvest

After the outbreak of the war, sea exports through ports were blocked, so Metinvest was forced to focus on the most attractive markets in terms of price and logistics capabilities and costs. The European market became a priority, but later the situation partially changed – now the price and other conditions for Ukrainian pig iron on the American market are much better than in Europe.

Dmitriy Nikolayenko, Metinvest’s Chief Commercial Officer, told this in an interview with FAQ Talks.

During the first year of the war, Metinvest’s exports were mainly limited to the EU market.

“A certain niche has opened up for us in the European market, as Russian products have stopped coming there. Our markets are now mainly European, except for pig iron and billets,” said Metinvest’s commercial director.

According to him, Metinvest supplies pig iron mainly to the US market, which works only with Ukrainian and Brazilian products, not Russian ones. This makes the market more attractive.

“Despite the close logistics, the export pig iron market in Europe is worse for us than the American market. It seemed that it should be better, but Russian pig iron is entering the European market, which lowers market prices,” adds Dmitriy Nikolayenko.

According to him, Metinvest exports billets to different markets.

“Sometimes the price in Latin America suddenly becomes more attractive than in Turkey because there is a glut of Russian products at reduced prices. There are such paradoxes that a market that is far away becomes more attractive,” summarized Metinvest’s commercial director.

Last year, Metinvest reduced pig iron sales by 15% compared to 2023, to $266 million, due to a 16% decrease in supplies to 558 thousand tons. North America and Europe remained the main export destinations for this product, accounting for 71% and 23% of all shipments in 2024, respectively.

At the same time, in 2024, sales of billets increased by 9% y/y – to $389 million due to a 16% y/y increase in sales volumes to 716 thousand tons. Deliveries to MENA countries increased by 237 kt, accounting for 50% of total supplies in 2024 (20% in 2023). Conversely, supplies to Europe decreased by 143 thousand tons year-on-year and accounted for 38% of total sales (68% in 2023).

As previously reported, Metinvest Group topped the rating of Ukraine’s largest exporters in 2024 according to Forbes Ukraine. Thus, exports of Ukrainian mining and metals products amounted to $7.3 billion in 2024. Metinvest, together with Zaporizhstal, accounted for almost $3.9 billion of this amount. The company exports iron ore raw materials, flat products and semi-finished steel products to 51 countries, including the markets of India, Sweden and Norway, which were developed last year.