International Steel Mills
Sanction-Hit Severstal Says It Will Divert Tons From EU to Other Markets
Written by Michael Cowden
March 3, 2022
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
Michael Cowden
Read more from Michael CowdenLatest in International Steel Mills
Nippon plans to double steel output at USS operations: Report
Now that it has acquired U.S. Steel, Nippon Steel is planning a significant expansion of its US operations, including the construction of a new mill and more than doubling its steel output.
Global steel mill output steady through May
Global raw steel production rose 2% from April to May, slightly above average production levels seen in recent months, according to data recently released by the World Steel Association (worldsteel).
Trump says US government to control 51% share in USS
President Trump says the US government will hold a 51% stake in U.S. Steel after the Nippon deal.
USS, Nippon Steel quiet as litigation deadline approaches
There has been little word from U.S. Steel, Nippon Steel, or the White House since President Trump endorsed the companies’ “partnership” on social media and celebrated it at the May 30 rally outside Pittsburgh.
Ternium’s Vedoya named AIST’s Steelmaker of the Year
Maximo Vedoya was awarded in recognition of Ternium’s expansion project in Pesquería, Mexico, and Ternium’s efforts to decarbonize steelmaking.