MOSCOW, October 21. /TASS/. The growth rates of steel demand in Russia will slow down to 1-2% in 2020 following an abnormally high growth in 2019, Moody's international rating agency reported on Monday.
The sharp growth of demand to 4-5% in 2019 was mainly due to non-recurring factors and is not stable, Moody's analysts suggest. The agency projects that the growth rates of steel demand in Russia in 2020 will equal 1-2% due to weak growth in the majority of key steel production sectors. Businesses’ confidence in the construction sector, which is the main domestic steel buyer, still remains low, though it has increased compared with 2018.
The Russian government’s plans to boost residential construction by 50% by 2024 and upgrade infrastructure can trigger domestic steel demand, though the progress is minor as of today, the agency noted.