Russia Steel states worsening of market conditions in the steel market of Russia in October
The fall of the visible demand for steel in Russia might exceed 12% by the end of the year, 25% in car manufacturing, the orders from the producers of household appliances will fall by 15%, by 14% from producers of industrial equipment, the demand for steel from construction companies will fall by 12%, the chairman of the Committee of “Russia Steel”, Y. Mishin, thinks.
On the results of Jan-September 2015 the visible demand for steel in Russia fell by 9%, in Jan-October the situation in the market kept worsening, Mishin said. As a result steel production in Russia in 2015 might fall by 3% against 2014.
According to Y. Mishin, the issue of permissions for the construction in Russia fell by 50-60%, it shows the fundamental problems in the construction sector which deepen by the significantly increased offer of commercial property. According to the expert, the recovery can’t be expected there.
The Russian metallurgical companies have to expand their presence in foreign markets offering more than 40% of the entire volume of metal rolled products for export. According to Russia Steel, the volume of rolled products export from Russia on the results of 2015 will exceed 28 mln tons. Today the Russian companies start to sell some types of rolled products making a loss. One of such products is hot-rolled coils.
