Iran Sanctions to Hit Russian Steelmakers Profit.
Iran, which previously accounted for as much as 18 percent of Russia's steel export volumes, has cut purchases of Russian and Kazakh semi-finished and finished products to about 40,000 metric tons a month, down more than 90 percent compared with 500,000 tons previously in a good month, the bank said, citing Steel Business Briefing.Magnitogorsk Iron & Steel and Evraz Plc (EVR) stand to lose the most, Sergey Donskoy, an analyst at Societe Generale, said in a note. "If the situation gets worse, it will hit more or less everyone to a different degree."
Evraz doesn't sell steel directly to Iran, said Tatyana Drachuk, a spokeswoman for the steelmaker part-owned by Roman Abramovich. The press office of Magnitogorsk, known as MMK, didn't comment when called by Bloomberg.
Iran has accounted for as much as 40 percent of MMK's total exports, and a halt to imports may force MMK to seek alternative markets or cut production, Donskoy said. Other steelmakers may be affected as the situation puts pressure on domestic prices for long-products which are used in construction, Donskoy said.
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| Publication: | Moj News Agency (Tehran, Iran) |
|---|---|
| Geographic Code: | 7IRAN |
| Date: | Jan 31, 2012 |
| Words: | 195 |
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