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In Russian stainless steel remains on the background

As shown by statistics, the level of consumption of stainless products in Russia disappointingly low. The annual use of one person slightly above 2 kg. This figure is even less than the Indian results. Stainless steel is similar to the state of the country's industry index. This product is widely used in nuclear, defense, machine-building industries. However, in the Russian markets stainless steel is not the first place and of little interest to domestic steel companies. Main same volumes produced by enterprises, is currently experiencing financial difficulties. This is the Chelyabinsk Metallurgical Plant, WMC «Red October», Izhstal, Zlatoust Metallurgical Plant.

In 2015, the stainless steel in terms of stability will be observed in all probability only in the oil and gas industry and the military-industrial complex. The «Rosatom» were reduced investments in the construction of new power units at 32.3%. It is not excluded that the use of stainless steel in the manufacture of consumer products to increase slightly, but this region is the low part of the Russian market.

It is necessary to take into account the fact that a larger percentage of the demand comes from the leading consumer. Among them, make up a high percentage of state-owned companies. For them, the stainless steel is supplied under long-term contracts for the implementation of certain programs. In this case, the costs rather rigidly prescribed. Because the Russian market can be considered sufficiently elastic. The rising cost of production has a sufficient effect on the apparent demand.

Significant changes in the stainless steel market in Russia began in late February — early March 2015. Import parity has been achieved due to reduction of the global cost of production and the growth of domestic prices. Prices for Chinese and Indian products matched domestic prices — and sank even lower. Is considered by some industry representatives, in April, one would expect some downward correction value of stainless flats in the background reduce the cost of imports. However, even with the stability RUBmetallurgi Russia may well increase the share of products in the domestic market.

As for the outlook, it is quite possible large-scale import substitution of consumer of foreign products, especially household and kitchen appliances, medical equipment and sports equipment.

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