Russian metal companies are considerably decreasing output.
Thus, compared with January-February, MMK has decreased steel production by 40%, while Severstal is reporting a 20-40% drop in June.
MMK might produce 550 thousand tons of steel in June. With full loading of capacities the company produces around 1 million tons per month.
A part of Severstal machinery is also idle. If the situation persists and the government doesn’t interfere with support, 20-40% of machinery will remain idle.
Thus, Russia is unable to reorient its metal exports from Europe to other regions, despite a sharp rise of semi-finished products exports to China in April. (Ukrainian metal)