Due to a combination of plentiful raw material supplies and political history, the CIS region produces far more steel than is needed to meet demand within the region. After China, CIS is the largest net exporting region in the world. ISSB holds trade data at 6 digit HS tariff level for the dominant steel nations of the CIS region: Russia, Ukraine, Belarus and Kazakhstan, whom together produce 99% of the region’s steel. Additionally with export coverage of 97% of steel production globally, ISSB is ideally placed to assess the market for steel in those CIS countries for which national trade data is not available.
Crude Steel Production
CIS is a low cost region in which to produce steel, predominantly due to the abundance of steelmaking raw materials and low cost energy supplies. Crude steel production reached a recent peak in 2007 with both 2008 and 2009 seeing significant reductions. After a small recovery in 2010 and 2011, steel production has been on a decline for the past four years, with a 2015 figure, which was affected by the unrest in Ukraine, some 18% below the 2007 output tonnage. CIS output has effectively been maintained in 2016.
World Steel Association crude steel production data for the CIS region is summarised below.
Trade in Steel
After showing a general general downward trend to 2013, Russian exports have rebounded strongly over the past three years, likely driven by the deteriorating domestic demand for steel following the collapse in the Oil and Gas sector, on which the country relies.
Following the 12% fall in Ukrainian exports in 2014, as a result of the well documented unrest in the East of the country, exports fell further in 2015, by 18% making 2015 the lowest export year since 1998. There was a recovery in 2016 but amounted to less than 3%.
In 2016, exports from the CIS nations as a whole increased by 5%, effectively correcting the previous year’s deterioration. The main producing countries of Russia and Ukraine both achieved growth. EU was the main export destination with a growth of 8% but substantial increases were achieved in more local markets.