NLMK says cuts Russia’s 2017 steel demand growth forecast to 1.5%

LONDON, Jun 21 (PRIME) -- Russian steelmaker Novolipetsk Steel (NLMK) has worsened its 2017 domestic demand growth forecast to 1–1.5% from 2.5%, CEO Oleg Bagrin told reporters on Wednesday on the sidelines of the Russia Calling business forum.

“We expect demand for steel to grow 1–1.5% in 2017. We adhere to this forecast and so far we have seen nothing that may improve it,” he said, adding that the current year is unusual as a typical spring increase of demand was delayed.

“We see some sort of improvement in consuming industries only now, in June, and it is happening in the construction industry in the first place. This may even cut final growth for the year as the season had started later than usual. We are not super optimistic about that.”

In 2016, NLMK raised its steel production by 4% on the year to 16.64 million tonnes.

End