The redirection of supply chains following the outbreak of war in Ukraine and subsequent sanctions on Russia will be neither easy nor cheap, and will take time, says Polish distributor Bowim. The redistribution of Russia’s EU safeguard quotas to other producers is however a positive step.
In 2021 Bowim’s direct trade with Russia, Ukraine and Belarus amounted to a 0.5% share in overall procurement and 0.4% in overall sales. The firm also traded indirectly with these countries through companies registered elsewhere or whose beneficiaries fall under EU sanctions – this business accounted for a 25% share in overall procurement, Bowim says in its 2021 annual report.
Countries such as Turkey, China and India, as well as those not dependent on supply of semi-finished products from countries involved in the war will be the biggest beneficiaries of the EU’s ban on Russian and Belarussian steel, it adds. The resulting increased cost of procurement further exacerbates the unprecedented rise in prices of gas, coking coal and carbon emissions.
Bowim reported a 6% on-year increase in consolidated shipments in 2021 to 539,121 tonnes, with flat products taking a notably larger share than the previous year and rebar figuring less in overall deliveries, Kallanish notes.
Flat product sales rose 11% last year to 205,208t, with pipe sales down 2% to 96,210t and rebar shipments down 15% to 75,687t. The steel structures segment took a 28% share in sales versus 24% the previous year, at the expense of the trading segment which saw share drop to 15% from 19%.
Bowim’s consolidated revenue surged 87% in 2021 to PLN 2.26 billion ($527.3 million), while net profit ballooned almost nine-fold to PLN 153.3m.
Adam Smith Germany
