International Steel Prices
![](https://www.steelmarketupdate.com/wp-content/uploads/sites/2/media/k2/items/src/84f6fa807b2a76bd2fe2bb4d9979bdf4.jpg)
CRU: Double-Edged Turmoil as the EU Bans Russian Steel
Written by Matthew Watkins
March 15, 2022
By CRU Principal Analyst Matthew Watkins, part of CRU’s steel series, March 14.
The EU announced it will “prohibit the import of key goods in the iron and steel sector from the Russian Federation.” We do not yet have details of what goods these are, but we can look at trade flows between the two to see which products will hurt which party.
To a certain extent, this move only makes official what the market has already done in the last few weeks. EU companies, as well as those in the UK, USA and Canada to name a few, were already not able or willing to buy anything from Russia because of a combination of current or potential sanctions, inability to finance, insure or ship, and reputational damage. So, in one sense, this announcement simply formalizes it.
Something else that it does, however, is indicate that this is likely to be a structural change rather than a cyclical one. It is unlikely that we will see EU companies return to buying steel from Russia any time soon. The reorganization of global trade flows will be something that persists.
The EU Takes Over Half of Russian HDG Exports
Russian dependence on the EU is highest for HDG, plate and slab, and lowest for CR coil and heavy sections:
Stopping HDG Would Not Hurt the EU, But Halting Semis Will
In contrast, HDG is a product where the EU has a low exposure to Russia as a share of the total. A ban here will hurt Russia much more than it hurts Europe:
For most other products, there is not such an asymmetry of importance in the trade flow. Halting the flow of semis, particularly slab, will hurt both parties. Plate is also an area where there is a large mutual dependency. It is noteworthy that in plate, a significant share of domestic EU supply is based on re-rolled CIS slab, so there are additional effects.
Overall, there is less of a mutual dependency in longs products than in flats. That said, the EU does import a significant share of its rebar from Belarus as well as Russia; and combining the two origins leaves Europe also with a sizeable resourcing problem for rebar.
Ukrainian trade flows are of course not halted by sanctions or import bans, but rather by an inability to produce or ship. In principle, these could restart – but in practice these volumes are likely to remain also unavailable to EU buyers for some time.
Request more information about this topic.
Learn more about CRU’s services at www.crugroup.com
Matthew Watkins
Read more from Matthew WatkinsLatest in International Steel Prices
![](https://www.steelmarketupdate.com/wp-content/uploads/sites/2/2024/07/SMU_CR_ForeignVs.Domestic_2024-0719_Thumbnail.png)
Imported CR still cheaper despite lower US prices
The price gap between US cold-rolled (CR) coil and imported CR has fallen to a 10-month low as domestic tags continue to drift lower. Domestic CR coil prices averaged $920 per short ton (st) in our check of the market on Tuesday, July 16, down $40/st from the week before. CR tags are now down […]
![](https://www.steelmarketupdate.com/wp-content/uploads/sites/2/2024/07/SMU_ForeignVs.Domestic_2024-0718_Thumbnail.png)
US HRC prices fall more than 10% below imports
US hot-rolled (HR) coil prices this week drifted further below offshore hot band prices on a landed basis. The premium is now near a two-year low. SMU’s check of the market on Tuesday, July 16, put domestic HR coil tags at $640 per short ton (st) on average, down $10/st from last week. Stateside hot […]
![](https://www.steelmarketupdate.com/wp-content/uploads/sites/2/2024/07/SMU_CR_ForeignVs.Domestic_2024-0712_Thumbnail.png)
Imported CR still cheaper despite declining US prices
Offshore cold-rolled (CR) coil remains cheaper than domestic product. The gap continues to tighten, however, as US CR coil prices slip to a nine-month low. Domestic CR coil tags averaged $960 per short ton (st) in our check of the market on Tuesday, July 9, down $5/st from the week before. CR tags are now […]
![](https://www.steelmarketupdate.com/wp-content/uploads/sites/2/2023/07/CRU-Logo-2023-07-21-at-4.35.41-PM.png)
CRU: Sluggish plate demand weighs on prices
Global Plate prices declined in all regions this week amid slow seasonal demand. With bearish outlooks on demand in the near term, market participants are watching how mills will react to low order entry levels and short lead times. In the US and China, production has been steady, but in Europe, steel mills are contemplating […]
![](https://www.steelmarketupdate.com/wp-content/uploads/sites/2/2024/07/SMU_ForeignVs.Domestic_2024-0711_Thumbnail.png)
Sliding US HRC prices fall further below imports
US hot-rolled (HR) coil prices continued to drift lower this week, falling further below imported hot band tags on a landed basis. SMU’s check of the market on Tuesday, July 9, put domestic HR coil tags at $650 per short ton (st) on average, down $15/st vs. last week. Domestic HR coil prices are now […]