The US Census Bureau shows that Russian metal imports have dropped drastically to almost zero due to the conflict in Europe. Steel and iron, which is crucial for the nation, are getting diverted to markets in Asia instead.
Almost Zero Imports of Russian Metal
Russian ferrous metal exports to the United States tumbled to $0.6 million in July, down from $201 million in the prior month, and are expected to reach $1 billion in the first quarter of 2022, as shown in the Russian business daily RBK, citing US Census Bureau data, reported RT.
Last June, ferroalloys made up the majority of shipments of ferrous metals exports to the United States, valued at $112.5 million, together with semi-finished steel products, valued at $88 million. Consignments fell to $0.4 million and zero in July, respectively.
Steadily in the past June, ferroalloys accounted for the vast majority of shipments of ferrous metals exported to the United States, costing $112.5 million, alongside quasi-iron and steel goods, worth $88 million.
Throughout July, consignments tumbled to $0.4 million and zero in both, noted the Good Word News.
The year before, remarked the US census bureau, imports of Russian metals such as cast iron, iron, steel, and rolled metal, amounted to $2.77 billion, or even an average of $230 million a month. At the time, the United States accounted for roughly 9% of all Russian ferrous metal exports, citing CSM Times.
Russia is not the most favored nation due to Ukraine. In reaction to the dispute in Ukraine, the Group of Seven nations rescinded Russia's "most preferred nation" trade position in April. The status has assured low fees on Russian products sold worldwide since 2012.
Washington issued the final list of Russian goods aimed at 35% tariffs on imports as a portion of Ukraine-related punitive measures through late June. Steel and assorted steel products are some of the items.
Exorbitant costs prompted Russia to shift its attention to emerging markets. Turkey was one of the top importers of Russian ferrous metals through June, spending $546 million on purchases.
As shown by the UN foreign trade data and the General Administration of Customs of China, China has increased its buying of Russian iron and steel from $163.5 in June to $337.4 a month later. Beijing shipped only $84.5 million in Russian ferrous metals in July 2021.
Mexico, Taiwan, Middle Eastern countries, and India have become the main consumers. Based on the Russian Trade Ministry, the Asian countries' share of steel exported goods exceeded 50% in August, slightly higher compared to 10-20% earlier.
Based on the most recent Fastmarkets data, which has been referenced in the mainstream press, Russian businesses are required to sell metals at big discounts of 25% or more.
Moscow Still Profits From the US Trade
It comes in the wake of Washington's trying to impose a slew of punitive measures on Moscow. As reported by the Associated Press last Thursday, hundreds of various types of unapproved goods worth billions of dollars are still entering US ports, mentioned New York Today.
As revealed in the report, more than 3,600 shipments of wood, metals, rubber, and other goods have shown up at American ports from Russia as of February. Based on the US census bureau, former large-scale Russia's metal imports are less than before as punitive measures are imposed.
