New EU sanctions package against Russia includes steel company Evraz

Market players are trying to predict the consequences of this decision

The new, 19th package of EU sanctions against Russia includes the British company Evraz pls, a mining and steelmaking holding company whose main business is in Russia, according to SteelOrbis.

The company operates the West Siberian Metallurgical Plant (ZSMK), one of the largest producers of billets, slabs, rebar, and rails in Russia. Its products are mainly supplied to local and Asian markets. Evraz’s assets include the Nizhny Tagil Metallurgical Plant (NTMK), which sells its products mainly on the local market and for export through Black Sea ports, and has recently been actively engaged in the shipment of slabs, and Evraz KGZK (Kachkanar Mining and Processing Plant).

ZSMK and NTMK also supply pig iron.

Players in the steel market are trying to assess the possible consequences of this decision. In the Black Sea region, the company was mainly engaged in the sale of slabs, in particular to Turkey, as well as the periodic export of pig iron (BPI). One market source suggested that supplies from NTMK, at least to Turkey, would not change significantly, as most buyers had previously had virtually no problems with shipments from other Russian plants subject to sanctions. However, prices are likely to be lower than for “clean” materials.

In the Far East, Evraz is one of the main sellers of Russian billets, with Taiwan being the main destination, where there is price competition with China. However, tougher sanctions could put additional pressure on sales of these products to other Asian countries, such as the Philippines.

Evraz pls is included in the list of Russian factories that have already been hit by EU and US sanctions. It currently includes Severstal, Metalloinvest, and MMK. At the same time, some companies with production facilities in southern Russia are subject to sanctions only because of their owners or top management.

As GMK Center reported earlier, the EU recently renewed sanctions against Iran, banning trade in steel and metals. The restrictions cover exports, imports, and financial transactions, with current contracts remaining in force until 2026.