Russian steel demand showing signs of recovery as COVID-19 restrictions ease

Russian steel demand is gradually returning as COVID-19 related restrictions ease and construction activity revives.

 According to Sberbank, the first three weeks of August saw Russian consumers’ expenses restored to the level they were at a year earlier, and Russia’s PMI, which had collapsed to 34% in April-May, recovered to 49% in June-July.

Worldsteel figures showed that Russia’s production fell by 3% over the year to 35.3 million mt in the first half of 2020.

The period saw an 11% drop in Russian steel consumption to over 19 million mt, according to Evraz.

In the first signs of a decline in the Russian market amid the coronavirus pandemic, mills began to look for export opportunities to hedge against weak domestic demand.

As a result, from January-June, Russia’s steel exports grew between 3% and 6% over the year to 14.5 million mt. That was 41% of the country’s production in that period. The supply of high value-added products suffered the most as exports comprised mainly billet, slab, pig iron and hot-rolled coil — the least profitable products.

However, business activity in the country recovered strongly towards the end of June, and in July and August, steel demand looked similar to that of the same months of last year.

Share on twitter
Share on facebook

Related News


Latest News

About AISU

Arab Iron and Steel Union ( AISU ) was established in Algeria in 1971 as the first Arab union of Arab countries to be established under the umbrella of the Council of Economic Unity in the League of Arab States.

AISU is a non-governmental organization of a private nature, not of a political or commercial nature.

AISU works in the field of preparing studies, organizing courses and holding periodic conferences for the prosperity of the Arab iron and steel industry. The union includes a wide range of companies with multiple activities related to the iron and steel industry.

Information About Union

92 Members

28 Board of Directors

17 Country

300.000 Employees

Subscribe Newsletter

Contact us

General Secretariat
Tel +21323304221 Fax +21323304254
Mail: relex@solbarab.org

Cairo Regional Office
Tel +20233356219 Fax +20233374790
Mail: aisucairo@solbarab.org

All rights reserved Arab Iron and Steel Union | 1971 - 2022

Powered by Mohamed Hamed