Russia: New crisis faces metallurgical enterprises

The metallurgical enterprises of Russia show deterioration in their indicators with an enviable stability. A number of problems presses down on the industry, among them is the reduced demand for their products. Domestic builders and automakers require less and less of their metal, the trade with long-term partners abroad is decreasing. The bet on China hasn’t been justified too. Now there is a surplus of Russian steel.

Steel subsoil

Since the era of Soviet industrialization, special attention was paid to metallurgy. New plants were constructed and cities grew around them. As a result, the share of the Soviet Union in the global production of iron and steel reached 25 %. In 1954, a special department – The Ministry of Ferrous Metallurgy of the USSR – was established for the development of the industry. Now the Russian steel industry is going through hard times.