Bloomberg reported that OAO Mechel, Russia biggest producer of coking-coal and OAO Severstal, the country second largest steelmaker rose on a forecast domestic demand may jump 56% by 2020.

Mechel added 1.4% to RUB 192.60 the first gain in three days by 12:59 PM in Moscow. Severstal advanced for the first time in three days up by 1.4% to RUB 380.60. The Standard & Poor GSCI Spot Index climbed for a third day increasing 0.1% to RUB 568.15.

Russian Steel a trade association representing the country largest steelmakers forecast the country demand for steel products will rise to 64 million tons by 2020 from 41 million tons in 2011 at a presentation today.

Russian Steel said steel output in Russia will increase to 80 million tons in 2020 from 69 million tons in 2011. The construction industry will remain the largest steel consumer, while the most growth in demand will come from automakers. Russian sales accounted for 54% of Mechel annual revenue in 2008. Coking coal is used in the production of steel.

Source - Bloomberg

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