The Ministry of Industry and Trade of the Russian Federation admits a decrease in demand for steel in the domestic market in 2022, but it will be within single digits, Denis Manturov, head of the Ministry of Industry and Trade, told reporters. “Probably, some adjustment (of domestic demand for steel) is possible, including downwards, but this is definitely not a double-digit figure,” he said.
At the same time, Manturov noted that he would not agree with the forecast of the World Steel Association, which expects a decrease in demand for steel in Russia by 20% this year.
“I would not confirm such expert assessments. We do not see this. Moreover, domestic demand is maintained based on the implementation of national projects, the development of the industry sectors in general and, in particular, the construction industry, and this is one of the major consumers of metal products. We of this (significant we don’t see a decrease in demand,” the minister said, recalling that despite the fact that traditional European markets for the industry turned out to be mostly closed today, “there are other markets, and they appear, and we are reconfiguring our logistics in terms of supplying our products”.
In April, the WSA published a forecast that steel consumption in Russia will fall by 20% in 2022, to 35.1 million tons from 43.9 million tons in 2021. In 2023, the association does not expect a change in the volume of metal consumption in the Russian Federation.
In March, the Russian Steel Association, which unites the largest producers of metallurgical products in Russia, predicted that the cumulative drop in domestic demand for steel by the end of 2022 could reach 30% (about 13 million tons).