PAO Sevestal is no longer selling steel to the European Union. The Russian steelmaker did not acknowledge – as has been widely reported – that the move was in response to EU sanctions.
“Severstal states that it is experiencing some difficulties in relations with its EU clients, and as a result is redirecting volumes to other markets,” the company said in regulatory filing.
Company owner – billionaire Alexei Mordashov – is among the oligarchs sanctioned by the EU in response to Russian forces invading Ukraine.
Severstal said it would have little trouble finding a new home for its tons.
“As Severstal is one of the lowest cost producers in the world, we are confident that this will help to maintain our capacity utilization,” it said.
The EU is among the largest steel-consuming regions in the world. Severstal in the filing did not say where it would redirect its shipments to.
The company did not respond to requests for comment as to whether some tonnage might be redirected to North America.
Severstal no longer has production operations in the U.S. It was once an important sheet provider via steel mills in Dearborn, Mich., and Columbus, Miss.
The company in 2014 sold the Dearborn mill to the former AK Steel – now part of Cleveland-Cliffs Inc. – and the Columbus mill to Steel Dynamics Inc. (SDI). But it maintained a presence in North America as an important player in the import market.
By Michael Cowden, Michael@SteelMarketUpdate.com
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