NewBalance
TimeswhenmajorityofRussian steelproductswas
exportedhave longgone.Russian steel export in2013
didnot exceed25Mt (+2Mt against2012).However,
according todifferent sources steelproducts
domesticconsumption reachedon theaverage44Mt
(+3.5—3.8%against2012).
Stateof things in the internationalmarket is
expected to improve.Expertsof leadingfinancial
institutionsand investmentsbanksbelieve the
EuropeanUnion isovercoming theeconomical
recessionwhichwill stirupgrowth inconsumption
offinished rolledproductsand semis. Such forecasts
however shouldbe treatedwithcaution for the
Europeangovernment continuespursuing thebelt-
tighteningpolicy,while thebanks stillhave to restrict
financing the real economy sector.Becauseof these
factorsgrowth inEuropean steel consumption in
2014may reachnearlyzero.
Russia’sexpectations for increase inexportsare
mainlyconnectedwith Iranwhere international
sanctionsaregradually lifted. If thewidely
announced tradeof Iranianoil forRussianproducts
includingmost likely rolled stock iscompleted
Russia’sexportwill growconsiderably.
Russian steelproducers still consider thedomestic
market as the toppriority for theexpectedgrowth
in theglobal steel consumptionwillunlikelycause
considerablegrowth inprices.Theglobalmarket this
yearwill still faceoversupplyespecially in theEUand
China,while theend-useof rolled stockwill become
limited.
According toWorldSteelAssociation, steel
consumption inRussia in2014will growmore than
4.5% reachingabout46Mt.Thus, theRussianmarket
will continueexpandingquicker than theglobal
marketwherenoone forecastsgrowthmore than
3.2% in2014.Nevertheless, thecurrent situation
in theRussianmarket isquite tough fornot all the
domesticeconomical trendsare favorable toRussian
steelproducers.Domestic steelproducersare in the
firstplaceconcernedabout slowingdown the rateof
growthof thegrossdomesticproducts.According
toA.Klepach,DeputyMinisterofEconomic
Developmentof theRussianFederation, thegross
domesticproduct in2013grewnomore than1.3%,
while in2014 it isexpected togrow2.5%, however,
manyRussianand international economistsconsider
thisfigure toooptimistic.ThisyearRussianeconomy
will seemany trends. Someof themundercertain
circumstancesmay stirupdemand for steelproducts,
others, on thecontrarymay slow itdown.
RomewasnotBuilt inaDay
About40%of the totalRussian steel output areused
inconstruction.Due to implementationof anumber
34
ferrousMarkets
R
ussian
S
teel
I
ndustry
G
rows
D
ue
to
D
omestic
M
arket
Russiansteelproducersbecomemoredependent
onthedomesticconsumption.
V
iktor
T
arnavsky
