Loading of Russia’s capacities on fittings production to fall to 60%

The putting into operation of new sort-rolling mills on the background of the falling demand in the domestic and foreign markets will lead to a sharp fall of use of capacities.

In 2016 the Russian metallurgical capacities on the output of sort-rolled goods will be loaded by less than 60%, commercial director of Mechel-Service, I. Dorozhkin, said.

“Despite of the demand fall, new production capacities appear in the domestic market. In 2013 NLMK-Kaluga, UGMK-Tyumen were put into operation, in 2014 – Severstal –Sort-rolling plant Balakovo, in 2016 the launch of Tulachermet-Steel, Southern mill of Evraz, plant in Naberezhnye Chelny is possible, production growth of the Abinsky metallurgical plant”, Mr. Dorozhkin said.

In Jan-September 2015 the demand for fittings in Russia fell by 15% and keeps falling. In 2014 the sort-rolling mills were loaded by 87%, in 2015 it fell to 7274% dependent on the season.

Without the growth of domestic consumption, 2016 will be a difficult year.

There is still the pressure of import, though its volumes in 2015 significantly fell. High rates of the Central Bank in general have a negative impact on the Russian market.