Posted on 04 Apr 2022
According to the Russian Steel Association, due to sanctions imposed by Europe and the US, the total reduction in Russian steel demand by 2022 may reach 30% or 13 million tons.
The main impact of the drop in steel consumption will be the auto industry. Eight of Russia's 14 automakers have suspended production, and the cumulative decline in vehicle production this year is expected to reach 50%.
Furthermore, despite the anticipated reduction in steel demand due to exchange rate fluctuations and the overall rise in international markets, Russian Railways proposed to increase steel export tariffs by more than 30%.
However, for metallurgical companies, it will inevitably lead to a decline in the competitiveness of Russia's exports, equalling the ban on exports.
Source:Yieh
