Russian steel consumption will fall by some 10 million tonnes or nearly a quarter this year in the face of global economic downturn and is not expected to bounce back to levels seen in 2008 before 2012.
Mr Rob Edwards MD metals and mining at Renaissance Capital told a steel conference organized by American Metal Market that "Consumption markets are still pretty much at a standstill.”
Mr Edwards said that Russian steel consumption this year would fall to 32 million tonnes from last year's 42 million tonnes with production totaling to 52 million tonnes in 2009.
Mr Edward said that "We don't see consumption going back up to normal levels of around 44 million tonnes annually before 2012 adding the tightness in the bank lending continued in Russia, pressuring project finance in the construction sector.”
Global economic downturn has knocked down steel demand as consumption in key consuming sectors such as automotive and construction shrank significantly, forcing steelmakers to reduce output.