Author: Paul Ploumis02 Mar 2015 Last updated at 02:38:17 GMT
ALBANY (Scrap Monster): The increased steel export volumes from Russia and Ukraine has led to flooding of international steel market, which already had been struggling on account of surplus Chinese exports. The steel makers from Asia to Europe are reportedly facing immense pressure due to increased imports of cheap steel from Ukraine and Russia along with China.
The demand for steel is yet to show signs of strength. The steel prices are already at the weakest level in the past five years. The prices which touched the 2009 lows are likely to decline further as the growing cheap imports of steel from Russia, Ukraine and China are likely to cap steel prices in the near to medium term. According to Kalyani Steel, an Indian steelmaker, the future of the industry looks worrying as customers are seen demanding further huge cut in prices. With steel prices plunging to new lows, the steel producers in the country are finding it hard to survive, the company stated.
According to CRU estimates, the steel exports by Ukraine and Russia totaled 46.4 million tonnes during the entire year. This is almost half the steel exports by China during the year. The Chinese steel exports during 2014 had totaled 93.78 million tonnes.
The World Steel Association monthly production statistics indicate that the total crude steel production by Russia was up by 6.0% from 5.781 Million tonnes in January 2014 to 6.130 Million tonnes in Jan ’15. However, on a year-on-year comparison, Ukraine’s total crude steel output declined sharply by 22.2% to 1.874 Million tonnes in Jan ‘15 when compared with the output of 2.506 Million tonnes during Jan ‘14.
The rising steel exports from Ukraine and Russia are feared to impact global steel prices negatively.