Interfax Russia reported that Russian President Mr Vladimir Putin at a meeting on the development of the metallurgical industry said that ensuring domestic demand for steel products should be in the focus of attention of both companies in the sector and the government and regional heads. He told “We're not just talking about stable supplies of these goods to our market, but also about an increase in these supplies, about growth in demand, primarily by increasing the volume of construction of housing, industrial and commercial facilities, by implementing large-scale programs to develop infrastructure: railroads, bridges and overpasses, and other capital facilities.” Mr Putin recalled that at a meeting in April, he gave instructions to approve a strategy for the development of the domestic steel industry through 2030, in which he asked that an emphasis be placed, in particular, on the active growth of domestic steel consumption, ensuring affordable prices for these products for business, large regional and federal projects with a powerful effect on target sectors of the economy. The president also noted that the issue of taxation of the industry was raised in the spring, and the government was instructed to jointly with business to clarify the export directions of Russian steel products in order to redirect the commodity flows to dynamically growing markets. Russia’s Deputy Prime Minister and Minister of Industry & Trade Mr Denis Manturov said “Russian metallurgists are now operating with limited access to Western markets and exports in Q2 decreased by about 20%. There is also a considerable decline in domestic consumption. As a result, the sector's capacity utilization has decreased from an average of 93% to 80%. The situation is the most challenging at Magnitogorsk at 62% and Severstal at 72%. They produce mostly sheet products, for which demand has decreased the most.” Mr Manturov also said “It's another matter that the export margin is not the same as it was a year ago. As the global economy slows, steel prices are falling sharply. In addition, in new markets for us, metallurgists are forced to find their niche and work at a discount. External supplies are unprofitable at the current ruble exchange rate. Given these factors, some ferrous metals producers were working at a loss in June-July.”
Interfax Russia reported that Russian President Mr Vladimir Putin at a meeting on the development of the metallurgical industry said that ensuring domestic demand for steel products should be in the focus of attention of both companies in the sector and the government and regional heads. He told “We're not just talking about stable supplies of these goods to our market, but also about an increase in these supplies, about growth in demand, primarily by increasing the volume of construction of housing, industrial and commercial facilities, by implementing large-scale programs to develop infrastructure: railroads, bridges and overpasses, and other capital facilities.” Mr Putin recalled that at a meeting in April, he gave instructions to approve a strategy for the development of the domestic steel industry through 2030, in which he asked that an emphasis be placed, in particular, on the active growth of domestic steel consumption, ensuring affordable prices for these products for business, large regional and federal projects with a powerful effect on target sectors of the economy. The president also noted that the issue of taxation of the industry was raised in the spring, and the government was instructed to jointly with business to clarify the export directions of Russian steel products in order to redirect the commodity flows to dynamically growing markets. Russia’s Deputy Prime Minister and Minister of Industry & Trade Mr Denis Manturov said “Russian metallurgists are now operating with limited access to Western markets and exports in Q2 decreased by about 20%. There is also a considerable decline in domestic consumption. As a result, the sector's capacity utilization has decreased from an average of 93% to 80%. The situation is the most challenging at Magnitogorsk at 62% and Severstal at 72%. They produce mostly sheet products, for which demand has decreased the most.” Mr Manturov also said “It's another matter that the export margin is not the same as it was a year ago. As the global economy slows, steel prices are falling sharply. In addition, in new markets for us, metallurgists are forced to find their niche and work at a discount. External supplies are unprofitable at the current ruble exchange rate. Given these factors, some ferrous metals producers were working at a loss in June-July.”
