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The demand for steel will continue to decline

Russian steelmakers guess in 2016, the demand for steel will continue to fall. However, the rate of decline of 12% may be reduced to 3−10% results in 2015. Steelworkers call is not one reason for this trend. Consumers are not able to obtain cheap loans. The Russian market received a large volume of imports. On the inside the cost of products is influenced by fluctuations and the dynamics of world prices. It is also worth considering and inflation.

In January 2016 began summing up the past year. Has been received by NLMK and Evraz. The company is focused on production of different products. NLMK is mainly engaged in flat rolling. Evrazосновные income brings rolled steel. Accordingly, the dynamics of steel production from one company to another. The influencing factor is the demand in a particular sector. In 2015, the company’s General produced 15.85 million tons of steel. Indicators repeat result 2014. The realization increased by 5% to reach developed 15.86 million tonnes. In 2014, the sales volume in Russia amounted to 43%. In 2015, the level dropped to 39%. As you can see, the increased number of exports. This trend has allowed NLMK to keep sales volumes at former level. The company Evrazв 2015 have reduced production of steel by 8%. The volume was 14.3 million tonnes against the de-consolidation of production of Highveld Steel and Vanadium Corporation. If you do not take this factor into consideration, the decline amounted to 5%.

Production rental company in Russia and Kazakhstan fell by approximately 9%. Company of North America have reduced production by 12%. In Ukraine, volumes grew by 2%. The reason for the growth was the increased demand for intermediate goods. Moreover, the consumption grew only within the country but also in foreign market. Presumably, the income Evrazза Molveno 2015 will be around 3.8 billion USD. This result indicates a decrease of revenue by 21.5% relative to Poloviny. For 2015, the overall revenue decline was 23%. Total revenue in 2015 from Evrazдостиг approximately 8.7 billion USD. What to income for the year NLMK, it is difficult to calculate. Still not disclosed sales in the IV quarter. For the 9-month period of 2015, the company’s revenue made up 6.37 billion USD.

Severstal confirms the demand in Russia for steel at 12%. In this variation across industries is highly visible. Pipe manufacturers have increased the consumption. Car industry, mechanical engineering and construction sector, on the contrary, it decreased. In General, RV rental consumption reached in 2015, about 40 million tons. In 2014, the result was 45 million tons.

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