Severstal expects higher steel demand but lower prices in Russia in 2018

Major Russian steelmaker Severstal expects further steel demand growth in the country, but prices are likely to decrease due to a downward trend in raw material markets.

“In 2017 Russian steel demand increased 5% and is expected to be 3-4% higher in 2018, supported by [gross domestic product] growth and gradual economic recovery,” chief executive officer Alexander Shevelev said.
Another driver for steel demand growth is higher investment activity as a result of low inflation, which allows the Central Bank of Russia to cut interest rates.

Russia's inflation was 2.5% in 2017, according to the Russian Federal State Statistics Service, which represented the lowest level since 1991.
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Published

Marina Shulga

February 02, 2018

22:40 GMT

Dnepr