Severstal: Jan–Sep demand for steel in energy sector grows by 36%

MOSCOW, Nov 7 (PRIME) -- Demand for steel from the Russian energy companies grew by 36% on the year to 4.2 million tonnes in January–September thanks to a low base of 2021, steelmaker Severstal’s Sales Director Yevgeny Chernyakov said in a presentation published on Monday.

Gazprom’s implementation of the largest investment program in the past 5 years also contributed to the rise. Consumption of metals products while developing mineral deposits is recovering in 2022 after a slump in 2020–2021, the company said.

In the construction industry, consumption of rolled metals by metal traders and ultimate consumers fell sharply in April–June, but economic activity restarted in July–September thanks to delayed demand, state support, and redistribution of investment flows. In January–September, demand from construction companies rose by 1.2% to 25.2 million tonnes.

The car industry’s demand for metal products fell by by 21% to 3.4 million tonnes.

In 2022, demand for metals in the energy sector should rise by 25% to 5.5 million tonnes, in the housing construction sector it should fall by 4% to 32.9 million tonnes, and in the car industry it should decrease by 22% to 4.5 million tonnes, Severstal said.

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