The announcement was made by the company’s Director for Economics, Mr. Andrey Eremin- the company’s director for economics.
He added “MMK, which previously shipping HRC to Iran along with its Russian competitor Severstal, was not affected by the move, as it had already redirected deliveries to other markets.”
“Even before the introduction of sanctions, deliveries were insignificant,” Eremin said. “We even cleared out the port warehouses where stocks were intended for delivery in that direction, and sold off supplies.”
Kazakhstan and Russia Ceases HRC Export to Iran
Recently, Russia and Kazakhstan have stepped back to do steel trade with Iran. The nations will be stopping HRC export to Iran over the prospects US reimposing sanctions on Iran.
The development indicates that despite protests from Russia, that unilateral US sanctions should not affect Russian companies, the steel companies are changing their behavior for fear of US sanctions. It is to be noted that coils are shipped to Iran by Russian steelmakers Severstal and MMK along with ArcelorMittal’s plant in Kazakhstan.
Iran was one of the major importer of Russian and Kazakhstani HRC during CY’17, as the nation imported around 0.42 MnT and 0.24 MnT of HRC respectively from these two exporters. Till May’18, Russia has already exported 0.11 MnT HRC to Iran.
About MMK
MMK is one of the world`s largest steel producers and a leading Russian metals company. The company`s operations in Russia include a large steel-producing complex encompassing the entire production chain, from the preparation of iron ore to downstream processing of rolled steel.
In 2017, the company produced 12.9 MnT of crude steel and 11.6 MnT of commercial steel products. MMK Group had sales of USD 7,546 million and EBITDA of USD 2,032 million during the year.
