MOSCOW, November 3. /TASS/. The rolled metal market in Russia grew 7% year on year in January-September 2023, mining and metals company Severstal said.

Metal consumption in Russia stood at 35.1 mln metric tons over nine months of this year, compared to 32.8 mln metric tons a year earlier.

Macroeconomic conditions are getting worse, despite positive indicators in demand, Severstal said. Raising the key rate to 15% could affect investment activity in the commercial realty segment and make it harder for households to take out loans. The draft Russian budget for 2024 anticipates expenditures to go down, which will influence key metal consuming sectors, the company added.

Construction sector

Metal consumption in construction edged up by 9% annually to 27.4 mln metric tons as of the end of nine months of this year.

Activity is high in the construction of residential housing, as well as logistical and transport infrastructure construction, Severstal noted. The company sees business recovering in 2023 on the whole on account of growing budget expenditures and investments.

Energy sector

Metal consumption in the energy sector lost 3% year on year to 4.2 mln metric tons in the sector.

The ongoing reduction of Gazprom's investment program significantly influenced the market in the third quarter and throughout the year, the company said. Severstal at the same time saw a rise in metal consumption within the framework of Transneft and Novatek projects.

Machine building

Metal consumption in machine building had surged up by 12% to 3.5 mln metric tons, driven by continuing growth of motor vehicles production at Russia’s largest plants. The output of freight railcars, steel heating radiators and refrigerating equipment is growing domestically, Severstal said. High demand exists for trucks, LCVs and special vehicles in 2023.