For the first time since 2009, Russian metallurgists will reduce steel production

Speaking at a meeting of the Coordinating Council of the Ministry of Industry and Trade of Russia for the Development of the Metallurgical Complex, the Vice President of the Russian Steel NP Igor good said that for the first time since 2009, the Russian metallurgical industry will reduce the production of steel by 2 million tons at once. At the same time, in 2013, the production of metal rolling and pipes will fall. The main reasons for the development of negative dynamics, Igor good called the deterioration of the foreign economic situation and the reduction of investment demand due to the fall in profit in the main sectors of the Russian economy.

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According to the forecast of NP "Russian steel" this year, a significant reduction in consumption will occur for a number of metal products. So machine builders will reduce the purchases of the metal rolling by 11 percent, including a hot -rolled sheet - by 6 percent, and cold -rolled steel - by 4 percent. The only significant growth driver in 2013 is the consumption of rental in construction, which will grow as a whole by a year by 6 percent. The growth in consumption of pipes of growing in construction will be leveled by the fall of consumption in other industries.

In the future, a smooth restoration of growth in steel consumption is provided by 5-6 percent until 2017 with low profitability of 8 to 10 percent. The main problems for metallurgists in the coming years will be the outstanding growth of tariffs of natural monopolies and uncertainty in the prospects for the growth of the engineering sector of the Russian Federation.