Severstal confirms estimate of fall in Russian demand for steel at 5.7% to 43.7 mln tonnes in 2024

MOSCOW. Jan 27 (Interfax) - Severstal has confirmed its estimate of the fall in demand for steel in Russia in 2024 at 5.7%, which it announced at the end of last year.

"Unfortunately, demand for steel is slowing down. We see a fall in steel consumption of around 5.7% in 2024. Overall, around 43.7 million tonnes of steel were consumed in the Russian Federation in 2024. This is significantly lower than the metal companies' capabilities, which stand at around 70 million tonnes. In view of this situation, we are looking for and finding new opportunities for our clients," Severstal CEO Alexander Shevelev said in an interview with Cherepovets' Channel 12.

Shevelev also confirmed the rise in the company's investment program last year at more than 60%. According to the previously announced strategy, capital expenditure (capex) was meant to grow 64% in 2024, to 119 billion rubles. In June, the company provided a reference point of 170 billion rubles for 2025, but at the end of last year Severstal said that a correction of investment expenditure was possible in 2025 amid continued high rates and the cooling of demand for metal.

The company plans to repair blast furnace number 4 (Vologzhanka) this year, which will make it possible to increase pig iron production, and will build an energy gas recycling plant, Shevelev said. A project to construct a pellet production complex worth 116 billion rubles will also be implemented, he said.