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Demand in Russia for steel will drop by 10%

«Severstal» Corporation, one of the five leading Russian producer, expects a decline in steel consumption. According to Vadim Larin, CEO of the company, in 2015, demand will fall by 10%. In 2016, performance will decrease by 1−2%. Analysts of «Severstal» talk about the domestic consumption of 38.5 million. Tons in the current year. Last year, the level of consumption was 43 million. Tons. The biggest drop falls on the automobile and the construction sector. In accordance with the statements of the demand in the construction industry will decline by 12.7%. The automotive industry will show the recession at 25%.

According to V. Larin on reducing the demand for trade restrictions affecting among other factors. They act on the key points for the «Severstal» and imposed against Russian products. As a result, the company was forced redirected 3−5% of deliveries. According to investors Larin, «Severstal» have to consider Asia and Latin America as consumers. However, large-diameter pipes are profitable segment of «Severstal». This product becomes large enough volumes of Gazprom. Main area of ​​use — the realization of projects for pipelines to Europe and China. In 2015, the increase in demand for large diameter pipes according to «Severstal» will be 15%.

Despite the decline in demand, Severstal plans to build another blast furnace. The project will be implemented at the Cherepovets Metallurgical Plant. In 2020−2021 gg. It partly replaces largest oven of «Severstal». A stop is planned to make for repairs. The annual capacity of the main furnace is 4.5 mln. Tons of steel. The new furnace will yield to her performance. The total number of furnaces operating at the company — 4 pieces. Their capacity reaches 10 million. Tons of steel.

«Severstal» continues to implement import substitution program. Assortment purchased from domestic suppliers is constantly growing. The company said about active collaboration with manufacturers. They are ready to provide quality at the level of materials and equipment is lower than that of foreign producers. The project started at the end of last year. Within its framework was estimated imported imported products. So defined position for the substitution. The first partners were «CHLMZ», «Kushvinsky plant rolls», «Energoprom Management» n other.

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