In the first seven months of 2024, the European Union continued to rely heavily on Russian steel raw materials, importing a substantial 3.36 million metric tons. This trade, valued at €1.62 billion, persists despite ongoing geopolitical tensions and various sanctions against Russia. The data, compiled by GMK Center based on Eurostat figures, reveals a complex picture of the EU's steel industry dependencies and the challenges of reducing reliance on Russian imports.
Semi-finished steel products dominated the import landscape, with 1.93 million metric tons of slabs and billets shipped to EU countries. This category alone accounted for €996.96 million of the total import value. Belgium emerged as the largest consumer, importing 758,700 metric tons, followed by Italy with 416,260 metric tons. Notably, Denmark and the Czech Republic also showed significant intake, with the latter increasing its imports by 22.9% compared to the previous year.
Pig iron imports also played a significant role, with 674,440 metric tons entering the EU market, generating €275.32 million in revenue for Russian iron and steel companies. Italy was the primary destination for these imports, receiving 501,330 metric tons. Latvia showed a remarkable increase in pig iron imports, up 71.9% year-over-year to 85,510 metric tons. This continued reliance on Russian pig iron highlights the challenges EU steelmakers face in finding alternative sources for this crucial raw material.
The import of Russian-made ferroalloys saw a dramatic surge, increasing by 128.4% compared to the same period in 2023, reaching 58,830 metric tons. The Netherlands dominated this category, accounting for over 81% of the imports with 48,060 metric tons, a staggering 180.1% increase from the previous year. This sharp rise in ferroalloy imports suggests that certain EU industries are struggling to find suitable alternatives to Russian supplies in the short term.
Direct reduced iron imports also formed a significant portion of the trade, with 666,020 metric tons imported at a cost of €227.52 million. DRI, an increasingly important raw material in steelmaking due to its lower carbon footprint compared to traditional blast furnace methods, underscores the EU's efforts to balance environmental concerns with raw material needs. The continued import of Russian DRI indicates the challenges in rapidly shifting supply chains for this specialized product.
The persistence of these imports raises questions about the effectiveness of EU sanctions and the steel industry's ability to diversify its supply chains. While there have been efforts to reduce dependence on Russian materials, the data suggests that complete disengagement remains a distant goal. The European Commission's decision to ease restrictions on slab imports from Russia, cited as necessary for some EU plants, exemplifies the delicate balance between political objectives and industrial realities.
