Synopsis:
The Russian Industry and Trade Ministry forecasts a 1.3% increase in steel production for 2024, following a 5.3% growth in 2023. Domestic demand, driven by housing and infrastructure projects, as well as orders from heavy machinery manufacturers and shipbuilders, is the primary driver behind this growth.
Article:
The Russian steel industry is set to witness another year of growth in 2024, with the Industry and Trade Ministry expecting a 1.3% increase in steel production. This projection comes on the heels of a strong performance in 2023, which saw a 5.3% rise in steel output, as estimated by the ministry.
According to the ministry's press service, the growth in steel production for January 2024 has already reached 1.3%, and similar figures are anticipated for the remainder of the year. This positive outlook is largely attributed to the robust domestic demand for steel products, which is being fueled by various sectors of the Russian economy.
Housing and infrastructure construction projects are among the key drivers of steel demand in Russia. The government's focus on developing and improving the country's infrastructure has created a significant market for steel products, as these materials are essential for the construction of roads, bridges, and buildings.
In addition to the construction sector, domestic heavy machinery manufacturers and shipbuilders are also contributing to the growth in steel demand. As these industries expand and take on new projects, they require substantial amounts of steel to produce their equipment and vessels.
The ministry noted that the substantial growth observed in 2023 was primarily due to the recovery and expansion of domestic demand following the low base of 2022. This suggests that the Russian steel industry has successfully adapted to the challenges posed by the global pandemic and economic uncertainties, and is now well-positioned for further growth.
However, the ministry also cautioned that the figures for 2024 will be compared against the high base of 2023, which saw steel production levels that were among the highest in Russia's recent history. In 2023, the country's steel output essentially matched the figures recorded in 2021, which were particularly strong.
The World Steel Association, in its late January assessment, estimated that Russian steel production increased by 5.6% in 2023, reaching a total of 75.8 million metric tons. This independent evaluation further reinforces the positive trajectory of the Russian steel industry and its ability to meet the growing domestic demand.
Conclusion:
The Russian steel industry is poised for another year of growth in 2024, with the Industry and Trade Ministry projecting a 1.3% increase in production. This growth is primarily driven by strong domestic demand, which is being fueled by housing and infrastructure construction projects, as well as orders from heavy machinery manufacturers and shipbuilders. Despite the challenges posed by the global pandemic and economic uncertainties, the Russian steel industry has demonstrated resilience and adaptability, positioning itself for continued success in the coming years.
Source: STEELGURU
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