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In the coming year for the Russian steel industry will come the dark times

2 November 2016

2017 for the Russian steel industry may be the most futile in the history of independence. And have a negative impact on the economy of the state. This became known thanks to investors, who published this information last Wednesday.

International rating Agency Moody’s headquarters, which is located in Moscow, November 26, 2017, made a sensational statement. Based on information in the published report, says that next year the iron and steel industry expect the downturn of the market.
As informs Agency in Russia with an expected gradual decline in domestic demand for the finished product. And the reason for these changes has been poor interaction between the original raw material manufacturers and end users. High profitability of the product was the cause of the decline in demand for materials. According to forecasts, the sector of the metal industry would weaken their position because of mistrust among market participants.
«The large-scale end-user ready metalloprodukt in Russia is the construction industry. But today here we can see a decline in demand. Also, the expected decrease in the number of orders from producers, pipelines of larger diameter and automakers.» — said the analyst Artem Frolov, who served as Vice-President of Moody’s.
According to the Agency today, it remains not clear whether there is a chance for the Russian metallurgy to rise from his knees after a decrease of 5 percent for 2016.
Productive capacity RM as the primary key index, will not be able to get out of the negative range in the next year and a half. And modernization of production capacity — which is the second main indicator will not exceed 75−85%.
If all the future negative factors, the Russian steel industry loses its competitive ability. Due to successful operational improvements and the instability of the ruble.
Russian companies suffer losses, as a rule, in the ruble equivalent and the insured in such situations. That enables them to stay afloat to stabilize the exchange rate.
It is likely that increasing export opportunities will be filling the market with cheap imported metal.

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