Russia's demand for finished steel products may reach 53-61m tonnes by 2020, 16-24m tonnes more than in 2007, the Russian government says in its reviewed strategy for development of the country's steel industry, originally published two years ago.

Consumption of added-value products (such as coated sheet and auto steel) may increase by 70%. Construction and automaking sector demand is set to grow by 36-40%, the government says.

The development of infrastructure and current projects, such as Sochi-2014 Olympic Games, along with the development of the defence industry and regeneration of the country's utilities infrastructure, are all set to play part in the increase.

As such, demand for flat rolled products is seen as increasing generally to 25-31m tonnes in 2020, as compared to 18.5m tonnes in 2007. Cold rolled flat products consumption could reach 8.6-12.1mt, as compared to 5.9mt, and will be determined by the development of production facilities for coated steel.

Exports of finished products in 2010-15 are seen as stabilising at 25-26m tonnes/year levels, tending to decrease in subsequent years, as a result of producers' efforts to concentrate on supplying domestic market. As such, exports could reach 27.5-30.5% of total production in 2020, as compared to 46.3% in 2007.

Imports are expected to be around 3m t/y, i.e. not more than 5-6% of total consumption. Production volumes of finished products in 2020 could reach 72-80m tonnes – 12.4-20.0m tonnes more than in 2007.

 

Steel Business Briefing, 11th December 2009