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Steel demand in Russia to drop by 14-15% in H1 2025 — Severstal CEO

The Russian metallurgical industry and the business world on the whole are in the ideal storm condition, Alexander Shevelev said

ST. PETERSBURG, June 24. /TASS/. The demand for steel in Russia will fall by 14-15% year on year as of the end of the first half of this year, CEO of the Russian steelmaker Severstal told TASS in an interview at the St. Petersburg International Economic Forum (SPIEF).

The Russian metallurgical industry and the business world on the whole are in the ideal storm condition, Alexander Shevelev said. "Difficulties exist with the geopolitical situation, closed markets of our traditional exports, and logistical difficulties were added. The key rate and the tough monetary policy join them now, which actually prevent the industry from developing. Customers, consumers of our industry experience serious difficulties; investment projects become frozen," the chief executive said. This affects the steel demand very seriously, he noted.

"It declined fairly significantly in the first quarter. It plunged by 14.5% year on year in construction; other sectors demonstrate even greater decline. Prospects are such that we expect the steel demand to decline at the level of 10% as of the end of this year. It will be 14-15% in annual terms as of the end of the first six months of this year," Shevelev added.

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