CIS steel production continues to decline in May

CIS crude steel production fell in May.

Regional production reached an estimated 7.4 million tons, down 19% year on year. Crude steel production in the first five months of 2022 was 38.4mt, down 13.1 percent in January-May 2021.

Russia's production in May is estimated at 6.4mt, down 1.4%. Cumulative steel production was 23.1 mt, down 2.3 percent year on year.

Ukraine, the second largest producer in the region, saw May crude steel production drop 83 percent to just 308,000 tons. The country's year-to-date production decreased by 52.8% to 4.2 million tons.

This is a result of Ukrainian steel production coming to an almost complete halt due to the Russian invasion of Ukraine on February 24. In April, most Ukrainian steelmakers resumed production, but capacity utilization is low and there are major logistical problems, including exports.

In the January-May period, Kazakhstan was the third largest steel producer in the CIS, with an estimated production of 1.83 mt, up 0.5 percent year on year.

Belarus, the fourth largest producer, saw its crude steel production reach 755,000 tons in five months, down 19.6 percent year on year.

According to Worldsteel data, Russia ranked fifth in the top ten global steel producers in May. However, Ukraine fell to 18th place.

In March, the European Council agreed to adopt the EU's fourth sanctions against Russia (see. The ban is expected to affect approximately €3.3 billion ($3.52 billion) of steel exports from Russia.

The protection quotas allocated to Russia and Belarus were redistributed among other countries. EU steel buyers are giving hope that imports from Ukraine can rebound with the gradual recommissioning of Ukrainian steel capacity. In May, the EU lifted tariffs on Ukrainian steel for one year.