EU Steel Imports from Russia Increase Amid Sanctions
In the first four months of 2025, the European Union increased its imports of steel raw materials from Russia by 8.6% compared to the same period in 2024. The EU imported a total of 2.12 million tons of steel products, valued at €867.4 million. Despite ongoing sanctions, Russia remains a significant supplier to the European market, especially in products like pig iron, semi-finished steel, and direct reduced iron (DRI).
The growth in imports from Russia highlights the continued demand for these products in the EU. However, the cost of these imports decreased by 8.7% year-on-year, indicating lower market prices for these materials. This trend is notable given the backdrop of global trade restrictions and sanctions aimed at limiting Russian exports.
Key Import Categories and Major Consumers
The majority of the steel products imported from Russia were semi-finished products, which made up 1.16 million tons of the total import volume. These products saw a slight decline in volume (-3.6% y/y), while their cost dropped by 14.6%. The largest consumers of these semi-finished products included Belgium, Italy, the Czech Republic, and Denmark. Among these, the Czech Republic saw a substantial increase in imports, rising by 57.7% year-on-year.
Pig iron also saw a significant surge in imports, with Russian exports increasing by 2.6 times to 696.99 thousand tons. The EU paid €254.45 million for these imports, marking a substantial revenue boost for Russian producers. Italy remained the largest importer of pig iron, with a notable increase of 3.1 times compared to the previous year.
However, there were drastic declines in DRI imports, falling by 44.1% to 241.34 thousand tons. The revenue from DRI imports also decreased by 50.7%, indicating a reduced reliance on this material. Additionally, there was almost no importation of Russian ferroalloys in early 2025, with only 3.1 tons arriving in the EU.
The April 2025 Import Breakdown
April 2025 saw a significant drop in total imports of Russian steel products into the EU, which amounted to 371.86 thousand tons, a 36.3% decrease year-on-year. Semi-finished products still dominated, accounting for 306.03 thousand tons. Notably, imports of DRI fell drastically by 68.9%, reflecting a broader downward trend for this category. On the other hand, scrap imports from Russia surged by 507%, reflecting a significant increase in demand for recycled materials.
Despite the overall decrease in import volumes, Russian steel producers continued to earn substantial revenue from exports to the EU. In April alone, they generated €161.13 million, although this was a 42.1% decline from the previous year. This indicates that while the EU is importing fewer products, the value of the remaining imports is still considerable.
SuperMetalPrice Commentary:
The EU’s increased reliance on Russian steel, despite sanctions, highlights the ongoing complexity of global trade in the metals sector. Although the EU has imposed various restrictions on Russian exports, certain products like semi-finished steel and pig iron continue to flow into the European market. The situation reflects the challenges of fully decoupling trade relationships, even in the face of geopolitical tensions. For industry players, understanding these shifts in supply chains and tariffs is crucial, as they will continue to impact pricing, material availability, and market dynamics in the coming months.
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