NLMK seeks extension of EU's Russian slab import quota

Belgium-based re-roller NLMK Belgium Holdings (NBH) is seeking a four-year extension of European quotas on Russian slab imports, alongside the regional Walloon government, sources suggest.

The company is contemplating building an electric arc furnace to feed its different units using money earned if the quotas are extended.

When the 3.74mn t import quota expires in October 2024, Russian slab will be prohibited from entering the EU. At that time, third-country processing of slab for onward sale into the EU also will be banned, in line with the melt-and-pour clause in place on Russian finished products.

Access to competitive slab is key for the EU re-rolling assets of NBH, which include coil facility La Louviere in Belgium and plate-rolling assets in Belgium, Denmark and Italy.

European mills are unlikely to supply the company with all of the material it would require, and EU-origin slab is more expensive so it would hit profitability. Sources question whether NLMK's EU assets could find sufficient tonnages elsewhere if the Russian flow does stop. Russia has exported about 4.2mn t of slab this year, representing more than 64pc of last year's total seaborne trade.

NBH is 49pc-owned by Sogepa, a Belgian investment fund owned by the Walloon region. Neither NLMK nor the government of Walloon returned requests for comment.

By Colin Richardson