Mordashov: Russian steel consumption to rise in 2017
MOSCOW. Dec 16 (Interfax) - Steel consumption in Russia will begin to recover in 2017, said Alexei Mordashov, the controlling shareholder of steelmaker Severstal .
The decline in steel demand is expected to total 10%-12% in 2015. Consumption is also forecast to decline next year. "We expect that the Russian economy will contract somewhat and steel consumption will decline next year. But our expectation is that it will begin rising as early as 2017," Mordashov said in an interview on Rossiya 24 television.
The global market situation remains difficult. "Global capacity utilization is about 75% right now, below 80%, which is traditionally a very low level, which causes price declines. Prices are currently at their lowest level in 12 years," Mordashov said, adding that prices dropped 3%-4% in 2015 amid the decline in global consumption.
"For the time being, unfortunately, we must acknowledge that, based on our understanding of the situation, we do not expect any rapid change in the situation. That is, the situation will remain fairly tense and prices will remain fairly low," Mordashov said.
