capacity of Russian metallurgy is higher than domestic consumption – Kommersant

Domestic steel consumption in Russia is about 40 million tons, while the total capacity of the domestic metallurgy is 70 million tons of steel. This was announced by the main shareholder of Severstal (MOEX: CHMF) and Chairman of the Board of Directors of the company Alexey Mordashov.

“Russia can produce 70 million tons of steel, and domestic consumption is about 40 million tons, domestic consumption is growing,” said Alexey Mordashov during the International Forum “Russia 2030 and the New World Economic Order: Key Factors and the Role of Business” (quote from TASS) .

According to the Severstal shareholder, the government’s efforts aimed at developing the domestic market “are worthy of the highest appreciation and praise.” At the same time, he noted the need to maintain its place in foreign markets.

In March 2022, the European Union banned the import of finished steel products from Russia. The EU market previously accounted for about a third of Severstal’s total revenue. After this, Russian steel producers said that due to sanctions they needed to redirect 4 million tons of steel products to the East. In 2022, Russia increased exports of semi-finished steel products to China threefold, to 2.3 million tons.

However, in 2023, exports of ferrous metals from Russia returned to minimal pre-crisis levels. Sources from the American agency Platts predictthat the situation with high steel production and low domestic demand will continue in 2024.

Read more in the publication “Kommersant” “China rolled back Russian steel”.

Anastasia Larina