Russian steel market faces sharp drop in demand

According to Severstal CEO Alexander Shevelev, steel consumption in Russia fell by 14%-15% in the first half of 2025. The most significant decline was recorded in mechanical engineering and energy (25%), while in the construction industry, which accounts for 70% of demand, the decline was 13%.

The key factors in the decline were the high key rate of Russia's Central Bank, which limits investment activity, the growth of steel imports from Kazakhstan and China, and a 5.2% decline in production, according to the WSA. Metallurgical companies in Russia are forced to reduce output, and some enterprises