Page 155 - RusRPTOct22

9.2.12 Mines and Minerals - steel & iron
ArcelorMittal Temirtau increased flat steel sales to Russia 4% m/m in August – Metal Expert. The company increased uncoated flat steel exports to Russia by 4% m/m 141kt. In particular, HRC deliveries rose 22% m/m to 97kt, while CRC and rolls supplies both plunged 21% m/m to 22kt, respectively. Overall, a sharp growth in the company’s steel exports to Russia is not sufficient for the Russian steel market, as ArcelorMittal Temirtau covers only c2% of apparent Russian flat steel consumption (as of 7M22, per Metal Expert).
9.2.13 Mines and Minerals - fertilisers
As a result of high input costs, fertiliser companies in the EU are reducing production. Norwegian chemical company Yara International announced in late August that it would reduce output of its nitrogen-based fertiliser due to soaring natural gas prices, with Grupa Azoty and PKN Orlen in Poland following suit. CF Fertilisers in the UK had also halted production as far back as September 2021, citing input costs associated with fossil fuels. According to the CRU Group, a business intelligence firm specialising in commodities, fertiliser producers in the EU were losing an estimated $2 000 (about R35 448) for every ton of ammonia they produced. Where farmers in Western Europe were paying about $250/t for ammonia in early 2021, the same fertiliser was currently selling for about $1 250/t, which was seriously affecting crop production. Although there were no direct bans on fertiliser imports from Russia as a result of the Russia-Ukraine conflict, the EU and the US had implemented indirect sanctions on individual company owners, business executives at these companies, finance, machinery, spare parts, and shipments via sea and rail through the Baltic states. Russia accounted for approximately 10% of global production and 20% of international fertiliser trade, according to Forbes.
Fertiliser prices rally as an energy crunch in Europe forces factory closures. Common nitrogen fertiliser ammonia in the US rose nearly 24% in the first week fo September. Over two-thirds of European ammonia production is offline due to high natural gas costs.
155 RUSSIA Country Report October 2022 www.intellinews.com