Consumption of metals in Russia this year will fall by 5-7% – Business and Economics

MOSCOW, October 29. /TASS/. Consumption of metals in Russia may fall by 5-7% this year due to a slowdown in demand in construction, Severstal CEO Alexander Shevelev told TASS.

“Unfortunately, our forecast is negative compared to the beginning of the year, when we expected a drop in metal consumption by 1-2%. However, given the decline of 9% by the end of the third quarter, we understand that consumption could fall by 5-7% by the end of the year, construction fell primarily as a result of slowing demand due to the key rate, lack of refinancing opportunities and high risks,” – he said.

A number of the company’s clients, mainly representatives of small and medium-sized businesses, prefer to wind down their activities and invest funds, since the profitability from them is equal to, and in some cases exceeds, the profitability of the business, the general director added.

The Russian Steel Association previously predicted that by the end of the year, domestic consumption in Russia will decrease by 6%. Earlier in an interview with TASS, Shevelev said that the consumption of metals in the country will grow by about 1-2% annually over the next five years.

According to Russian Steel, metal consumption in Russia increased by 7.4% in 2023 compared to 2022.