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Metal consumption in Russia rises by 7% in 2023

The company noted that machine-building enterprises continue to recover from the 2022 crisis - the metal consumption in this sector increased by 14% in 2023

MOSCOW, February 7. /TASS/. The capacity of the rolled metal market in Russia increased by 7% in 2023 compared to 2022, according to analytical materials prepared by Severstal. Metal consumption in Russia in 2023 reached 46.3 mln tons.

Severstal noted the construction industry, which grew by 9% year-on-year, made the largest contribution to market dynamics. Consumption of metal products for the construction of infrastructure facilities (+13%), commercial buildings (+9%), and individual housing (+10%) increased.

The company noted that machine-building enterprises continue to recover from the 2022 crisis - the metal consumption in this sector increased by 14% in 2023. Consumption in the automotive industry increased by 29% due to high demand for trucks, commercial and special equipment, growth in production at AvtoVAZ, as well as production of auto components.

Metal use in the energy industry fell 5% year-on-year in 2023. The company noted that demand in the gas production and transportation segments fell as companies adjusted their investment projects. "While the Russian economy experienced strong growth rates in 2023, a number of concerns have already emerged that may have a constraining influence on demand in metal-consuming industries. First and foremost, the key rate has increased, resulting in tighter lending conditions, including for mortgage loans," Severstal stated.

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