The EU has almost exhausted its annual quota for imports of Russian pig iron in 3 months

In the first quarter of 2025, European companies almost exhausted the annual quota for imports of Russian pig iron set by the European Commission as part of the 12th package of sanctions. According to Eurostat, from January to March, the EU market received 696.99 thousand tons (+3.5 times y/y) of Russian pig iron out of the maximum 700 thousand tons allowed.

The largest importers were Italy – 524.62 thousand tons (+3.8 times y/y), Latvia – 87.27 thousand tons (+98.7% y/y), and Belgium – 31.07 thousand tons (0 thousand tons in January-March 2024). The total revenue of Russian steelmakers from the sale of these raw materials to Europe amounted to €245.4 million (+3.2 times y/y).

According to the EU’s decision taken in December 2023, imports of pig iron from Russia are subject to a phased restriction: the quota for 2024 was 1.14 million tons, in 2025 – 700 thousand tons, and in 2026, supplies should be completely banned.

At the same time, analysts note that Russian pig iron exports may continue via third countries. In addition, some European companies use schemes with intermediaries to circumvent sanctions and purchase cheap raw materials.

Amid Western restrictions, Russian producers are trying to refocus on the markets of Asia and the Middle East, but the volumes do not yet compensate for the losses. Previously, about half of Russian pig iron exports went to the United States, but after the introduction of 70% duties in 2023, these supplies stopped completely.

“After the EU quotas are exhausted, Russian suppliers will put more pressure in Turkey, which may lead to a certain decline in pig iron prices. The time will come for other suppliers in the EU, including Ukraine,” commented Andriy Tarasenko, Chief Analyst at GMK Center.

In January-April 2025, the Russian Federation produced 20.09 million tons of pig iron (+0.01% y/y), retaining its place among the top three global leaders. The first place belongs to China (288.8 million tons), and the second to India (50.7 million tons).

As GMK Center reported earlier, the EU imported 5.34 million tons of mining and metals products from Russia in 2024. Despite the sanctions, Russian producers continue to generate significant revenues from exports to the EU, with the amount exceeding €2.5 billion last year. This indicates the low effectiveness of the current restrictions and the existence of exemptions that allow Russian steelmakers to export to EU markets.