Russian steel prices rose as much as 20% in the first half of 2024, as demand for housing and infrastructure rebounded despite a nearly three-year war with neighboring Ukraine and Western sanctions on Moscow.

Russian steel prices have risen between 5% and 20% since the start of the year, with demand up about 6% in the first six months, according to BCS analysts.

While ArcelorMittal, the world’s largest steelmaker outside China, reported a decline in first-half profit this month, Severstal and Magnitogorsk said they saw earnings growth, according to Bloomberg.

A Severstal spokesperson said the Russian steel market is not strongly correlated with its global counterpart.

The Russian construction sector is the biggest supporter of domestic steel demand, expanding by 3% over 2024, driven by housebuilding activity.

In the first six months of the year, nearly 2 million square metres of residential construction was completed in Moscow alone, with several roads also completed.

Looking ahead, BCS analysts said steel consumption in Russia could slow as the central bank’s monetary policy remains tight.