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In Russia, demand for steel will drop by 10%

22 November 2015

In any case, such a forecast issued experts «Severstal». The Russian company is among the five leading steelmakers country. It is estimated in 2015, the demand will decrease by 10%. In 2016, consumption will fall by another 1−2%. Vadim Larin, CEO, talks about the domestic consumption of the product at the level of 38.5 million. Tons. At the same time in 2014 this figure was 43 million. Tons. The greatest decline is observed in the construction and automotive sector. If we consider the sector separately, the decline in construction was 12.7%. Consumption of steel in the automotive industry to fall by 25%. The negative influence and trade restrictions against Russian products. They are administered at key points to Severstal. As a result, the company was forced forwarded the order of 3−5% of deliveries. According to V. Larin «Severstal» considers as consumers in Latin America and Asia.

The only profitable segment of «Severstal» — the production of large diameter pipes. This product is very interested in Gazprom. This is not surprising, given the large-scale projects of gas pipelines to Europe and China. In 2015, the estimated intake pipe by specialists at the level of 15%.

In 2016 it is expected to decline in the next smelting volumes. In Cherepovets metallurgical production on the main construction of the new kiln is scheduled. To some extent the new blast furnace will replace the largest oven of «Severstal». However, expect a partial replacement is possible in 2020−2021. The power of the new blast furnace will be less. Annual production capacity of the old furnace of 4.5 mln. Tons. In general, the plant «Severstal» involved 4 ovens. Their total capacity is about 10 million. Tons.

«Severstal» continues to implement import substitution program. It was launched at the end of last year. The project experts analyzed imports. The main objective of the study was to determine the position to switch to the replacement. Now the company is increasing the volume of products purchased from domestic producers. «Severstal» is working closely with suppliers to ensure the quality of materials and equipment. Company officials say the highest productivity in relation to the transition to the domestic lubricant oil. Also impressive analogues of refractory products and rolling rolls.

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