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Steel Buyers Demand Huge Discounts From Russian Producers

  • Some foreign buyers want discount of 40% to market price
  • Rising costs and strong ruble make some sales unprofitable
Rolls of zinc-coated steel sheet are stacked by crane in a storage area at a steel mill in Russia.

Rolls of zinc-coated steel sheet are stacked by crane in a storage area at a steel mill in Russia.

Source: Bloomberg

Updated on

Russian steelmakers were the most profitable across the global industry before the war in Ukraine, but now they’re being forced to sell to some buyers at heavy discounts.

The country’s producers have seen their options dwindle as sanctions choke sales to the key European market and customers elsewhere become more wary of dealing with Russian companies. With producers searching for alternative buyers, those that are willing to purchase want to do so at lower prices.