Russia’s steel consumption falls 11% in machinery construction
MOSCOW, May 11 (PRIME) -- Russia’s steel consumption decreased by 11% in the machinery construction industry to 1.1 million tonnes and by 9% in the energy industry to 1.3 million tonnes in January–March, steel producer Severstal said in a statement on Thursday.
“In the machinery construction industry (a fall by 11% on the year) there is decreasing year-on-year consumption of metals in all segments, but heavy machinery construction, in light of the exit of foreign companies from the Russian market and persisting problems with components supplies,” the company said.
“A fall in the energy industry (of 9% on the year) is linked to temporarily declining demand for large-diameter pipes from the state’s energy corporation. The decrease can be partially offset by demand from other companies in the future,” it also said.
“However, the lack of certainty of the future of the gas transportation system and sliding production of hydrocarbons prevent us from making a certain forecast.”
Russia’s overall metals consumption went down by 3% on the year to 11.15 million tonnes in January–March.
The construction segment looks as the most stable in year-on-year terms, its metals consumption decreased by only 1% on the year to 8.75 million tonnes in the period thanks to continuing infrastructural projects although construction of housing realty has slowed down, the company also said.