ArcelorMittal, one of the world’s largest steelmakers, has resumed shipments to Russia just a month after suspending deliveries, the Kommersant business daily reported late Monday.
ArcelorMittal removed Russian materials from its supply chain in March in response to Moscow’s invasion of Ukraine.
In May, Kommersant reported that the Luxembourg-based multinational had suspended supplies to Russia.
But commodities market experts told the newspaper that ArcelorMittal resumed deliveries on June 10 and has so far supplied Russia with more than 77,000 metric tons of steel.
ArcelorMittal has traditionally sent steel to Russia direct from its plant in Kazakhstan, where it is sold at a reduced rate due to lower production costs and the relatively short transport distances between the two countries.
These favorable terms hurt the interests of ArcelorMittal’s Russian competitors, which turned to the domestic market after Western sanctions curtailed exports.
Russia produced 76 million metric tons of steel in 2021, of which 40 million were exported, mainly to Europe.
International trade body the World Steel Association said that Russia produced 2.3% less steel in January-May 2022 compared to the same period last year.
Russian steelmaker NLMK forecast its output to drop by 15% in 2022.
Source: The Moscow Times