By substituting Russian suppliers on the EU market, Ukraine can increase the export of iron and steel products by $74 million per month. This is taking into account the volumes of iron ore and pig iron supplied by Russian companies to the EU market last year and the production capacities that remained on the territory controlled by Ukraine. Stanislav Zinchenko, CEO of GMK Center, told about it at the open hearings of the Verkhovna Rada Committee on Economic Development on the topic: «Substitution of imports from the Russian Federation and the Republic of Belarus by Ukrainian goods in Ukraine, the EU and the world».
“The maximum possible potential for increasing the export of iron ore and pig iron, according to our calculations, is $230 million every month. This is provided that the steel enterprises that remained in the controlled territory of Ukraine will be able to restore production to pre-war levels,” explained the CEO of GMK Center.
According to him, several issues need to be resolved in order to increase the export of steel products.
“European producers will buy Russian products as long as there is such a legal possibility. It is profitable to buy Russian now, because Russian steelmakers offer discounts (from 10% to 30% of world prices),” Stanislav Zinchenko emphasized.
As GMK Center reported earlier, many sanctions against Russian steel sector did not achieve their goal – the European market remained open for raw materials from the Russian Federation, the USA introduced minimal bans
In general, according to GMK Center’s research, the amount of losses from the blockade of sea ports reaches $420 million per month. Every month, Ukraine cannot produce and export 1.3 million tons of iron ore, 151,000 tons of pig iron, 192,000 tons of semi-finished products, and 218,000 tons of finished steel products.
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