UK steelmakers anticipate no CIS supply-related production disruption

UK blast furnace-based steelmakers say they have contingency plans in place to ensure production remains unaffected amid CIS supply disruption as a result of the war in Ukraine.

Russia’s invasion of Ukraine and subsequent drastic reduction in Ukrainian iron ore and coking coal production, halt to Black Sea export activity and sanctions on Russia limiting trade routes pose question marks over raw materials supply. Many European blast furnace mills rely on feedstock from the CIS for their steelmaking operations.

A British Steel spokesperson tells Kallanish: “We are not reliant on Russia or the Ukraine for supply of our raw materials, therefore we do not anticipate any supply disruptions and continue to operate according to our production plans. Our raw materials procurement teams are assessing the changing global supply chains and trade flows and we have contingency plans in place should this be required.”

Meanwhile, a Tata Steel spokesperson says: “Both Russia and Ukraine are manufacturers and exporters of steel in addition to being suppliers of raw materials including coking coal and natural gas. The tragic events unfolding with the Russia-Ukraine crisis will impact supply-demand dynamics, input costs and the overall global economy. We are continuously monitoring the evolving situation and have contingency plans in place to ensure our customers and stakeholders remain unaffected.”

Various steelmakers in the EU have also said they are thus far unaffected by the situation, with US Steel Kosice saying it has at least 90 days of production’s worth of raw materials in stock, voestalpine also well stocked and Salzgitter having contingency plans to avoid production disruption (see separate story).

Adam Smith Germany