Zaporizhstal's products

Simplification of customs policy and sanctions against Russian producers have opened up a new and now the main sales market for the company

Metinvest Group has replaced Russian steel coil suppliers who left the markets of the EU countries due to sanctions. This was stated by the operating director of Metinvest Olexander Myronenko in interview with NV.

«Now a large segment of suppliers has fallen out in the EU countries. They abandoned the Russian coil – there are no Severstal and other Russian producers on the market. We have occupied this niche,» he said.

Deliveries of Ukrainian products to the EU market became possible due to the simplification of customs policy. As a result, European consumers have become the main strategic market for Metinvest’s coils. At the same time, after the introduction of duties, the company practically left this market.

“Now there are no administrative restrictions, but there are economic ones. This is an increase in the cost of logistics to our final consumer – the Mediterranean market, North Africa. Previously, it was $30-40/t, including loading and freight. Now shipping through the ports of Poland is several times more,” said Olexander Myronenko.

Difficulties are also added by limited logistical opportunities in Ukraine, for which domestic exporters compete.

«Here is a question of product flows. If we take less, the grain farmers will take more. Now almost all grain is exported. Therefore, the issue of competition with farmers at the western crossings and in the port of Izmail will return closer to the end of summer, when the new crop starts,» he explained.

At the same time, he recalled that Russia still has the opportunity to supply steel semi-finished products to the EU. Russia’s NLMK is taking advantage of this opportunity, supplying slabs for its rolling facilities in Europe. They, in turn, sell finished products.

As GMK Center reported earlier, Zaporizhstal plans to increase production of commercial slabs up to 60-80 thousand tons per month. The products will be shipped to the company’s rolling assets in Italy and the UK. Since the beginning of the year, about 25 thousand tons of such products have been shipped abroad.

In May 2023, Ukrainian steelmakers increased the export of flat rolled products by 93.4% compared to April – up to 116.5 thousand tons. In January-May, 299.6 thousand tons of such products were exported, which is 76.4% less y/y.