Russia’s Surging Steel Industry May Seek Role on a Global Stage

With its abundant supply of cheap labor, energy and iron ore, Russian steel super-giants are game to do cross-border business. The strategy centers on consolidating the Russian steel industry around one or two companies, which, according to Moscow metals analyst Sergei M. Donskoy, will provide more bargaining power with foreign steel makers. Russia’s richest man, Roman A. Abramovich, bought a 42 percent stake in Russia’s largest steel group, Evraz, a move that signals potential goals of creating a state-controlled holding of Russian steel. In 2005 Russian exports accounted for about 6 percent of global steel production – not enough to sway world prices. Still, the mergers allow Russia to link with foreign steelmakers to ensure a global market. – YaleGlobal