Russia’s stainless output rebounds in July

Russia’s production of stainless steel decreased in January-July, show national statistical service Rosstat data monitored by Kallanish.

Output amounted to 118,900 tonnes, down by 2.9% on-year. However, in July alone Russian steelmakers produced 18,100t of stainless steel, up by 9.1% on-year and up 2.5% on-month.

In June, Russia produced 17,600t of stainless steel, less by 7.6% on-year (see Kallanish passim).

Russia’s production of stainless steel in full-year 2020 increased by 1.3% on-year to 204,260t.

Production at Russia’s Krasny Oktyabr (Red October) decreased in July compared with the previous month (see Kallanish passim). It amounted to 16,691t of stainless steel, down by 24.8% on-month. In June, production was 24,900t.

Russian stainless steel imports increased in January-July and the main supplier was again China, national special steel association USSA said earlier. Russian stainless intake was up 5.4% on-year to 241,520t. However, in July alone Russian stainless intake decreased by 18.5% compared to June to 34,700t.

“Rising prices in the foreign markets and problems with the formation of orders for the imported stainless steel limits the supply for domestic customers,” USSA said. “An increase in the key rate and a further increase in prices in the foreign market will contribute to the growth of prices in the Russian market.”

Russia’s additional export duties will meanwhile impact only a part of Russian exports of stainless products, because most of them are delivered to Eurasian Economic Union (EAEU) countries, according to USSA.

Svetoslav Abrossimov Bulgaria