Russia set to dominate Black Sea steel market in Q1, Ukrainian industry crippled by war
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Update time : 2023-01-05 19:19:26
With Ukraine's steel production infrastructure destroyed, idled or under Russian control, the Black Sea export market is unlikely to return to pre-war patterns any time soon and prices in the region will predominantly reflect Russian exports for the foreseeable future, market sources have told S&P Global Commodity Insights.
Ukrainian steel exports to the spot market, although ongoing despite the devastating impact of Russia's invasion, have been significantly reduced in both volume and product range. But Black Sea ports remain unused by Ukrainian steel producers.
In January-November, Ukraine's output was 6.16 million mt, down 69% on the year, according to Worldsteel data. With the destruction of the Azovstal and Mariupol steelworks last year, the two main integrated mills owned by Metinvest, Ukraine's steel production is set to remain well below historical levels.
