MMK expects the growth of steel consumption by 1.4%

In 2016 MMK expects the growth of steel consumption by 1.4% against 2015. A positive dynamics might stay in 2017.

According to the forecast of MMK, in the domestic market in 2016 the segment of hot rolled and cold rolled products is subject to the highest risk of premium fall – under the influence of a possible continuation of the rouble’s devaluation, instability of consumer demand for metal rolled products in Russia, as well as price stabilization for flat rolled products in the international market.

Along with this MMK expects a limited recovery of premium of zinced rolled products considering its current level to be minimal. Moreover, MMK expects that the premium for sort rolled products in Russia will stay in 2016 at the level of 2015 compared with the export due to a good number of players and a complicated situation in the construction sector that stimulates suppliers to price reduction.