Severstal maintaining Russian steel consumption forecast for 2024 at 1-2%

MOSCOW. April 17 (Interfax) - Severstal confirmed its December forecast for a 1-2% increase in Russian steel consumption in 2024. According to the company's 2023 report, demand will total 47.3 million tonnes of metal this year.

Demand will be supported by moderate 0.5% growth in the construction sector, continued growth in the machine-building sector (+5%) and recovery in the energy sector (+10%).

In 2023, as previously reported, Russian steel consumption grew 7% to 46.3 million tonnes, driven by the construction (+9%) and machine building (+14%) sectors. The increase in demand from these industries was offset by a 4% decline in consumption in the energy sector.

At the end of January, the World Steel Association (WSA) estimated metal production in Russia in 2023 at 75.8 million tonnes (+5.6%).

According to the April forecast of the WSA, steel consumption in Russia will amount to 46.4 million tonnes in 2024 compared to 44.6 million tonnes in 2023.

Steel production capacity in Russia is estimated at approximately 70 million tonnes. In March, the Russian Ministry of Industry and Trade estimated growth in steel production in 2024 at about 1.3%.