Russian metallurgical giants plan to enter the European market through online sales

As demand for steel grows in Europe, two large block suppliers are relying on online stores to help attract new customers. This may not sound like a groundbreaking plan. Online shoppers around the world can already order anything from a prefab house to a human skull, however European steel shoppers still make most of their purchases the same way they've been for decades.

This contrasts with the steel industry in Russia and China, where e-commerce has grown faster. Now Russian producers PJSC Novolipetsk Metallurgical Plant and PJSC Severstal hope to help change this. Both companies will begin offering online sales of products and services to European Union customers from next year, representatives of the two companies said separately. Victor Romanovsky, Head of E-Commerce at Severstal,

He added that online shopping offers opportunities to attract new customers and more efficient sales for small and medium-sized customers.

It has been a tough year for steel in Europe as sales are constrained by weak automotive demand. Domestic producers are also facing competition due to cheaper imports, while higher prices for iron ore are negatively affecting profits.

The German company Kloeckner & Co. has already launched the XOM Materials online platform for the sale of steel and related products. According to Romanovsky, Severstal has tapped into XOM to test the market before opening its own online store for European customers next year. According to him, the company was offered a stake in XOM, but it did not decide on the feasibility of the investment.