Rising steel imports increase market sensitivity in Russia
Alexander Shevelev stressed that the key issue for Russian metallurgists regarding steel imports lies not only in lower pricing, but also in the added risks of underconsumption within the domestic market.
The growing volume of steel imports into Russia is increasing the market’s sensitivity, although the current levels have yet to cause serious distress for domestic steelmakers. Severstal is closely monitoring the situation and does not rule out the possibility of initiating anti-dumping duties, the company’s CEO Alexander Shevelev told reporters.
"Clearly, competition is intensifying. This intensification stems from the rise in imports and they are indeed increasing. Not only from China, I would emphasize imports from Kazakhstan as being more significant at this point," Shevelev said in response to a question about whether the company and the industry are feeling increased competition from Chinese steel. He noted that Chinese steel imports are not yet critically affecting Russian metallurgists, as stainless steel accounts for roughly half of the total volume. However, pressure is being felt in Siberia and the Russian Far East, while there has been no significant penetration of foreign steel imports into Central Russia.
"Unfortunately, in a market declining this sharply, sensitivity increases. Imports are exacerbating this sensitivity, primarily due to weak domestic demand. Moreover, with a weakening ruble, there is a tangible risk of a significant uptick in Chinese steel imports - currently, the strong ruble dampens the appeal of the Russian market for exporters," the Severstal CEO added.
He stressed that the key issue for Russian metallurgists regarding steel imports lies not only in lower pricing, but also in the added risks of underconsumption within the domestic market.
Severstal is a vertically integrated mining and steel company and one of the largest steel producers in Russia. Its key asset is the Cherepovets Steel Mill, which has an annual production capacity of approximately 12 mln tonnes of steel.
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The growing volume of steel imports into Russia is increasing the market’s sensitivity, although the current levels have yet to cause serious distress for domestic steelmakers. Severstal is closely monitoring the situation and does not rule out the possibility of initiating anti-dumping duties, the company’s CEO Alexander Shevelev told reporters.
"Clearly, competition is intensifying. This intensification stems from the rise in imports and they are indeed increasing. Not only from China, I would emphasize imports from Kazakhstan as being more significant at this point," Shevelev said in response to a question about whether the company and the industry are feeling increased competition from Chinese steel. He noted that Chinese steel imports are not yet critically affecting Russian metallurgists, as stainless steel accounts for roughly half of the total volume. However, pressure is being felt in Siberia and the Russian Far East, while there has been no significant penetration of foreign steel imports into Central Russia.
"Unfortunately, in a market declining this sharply, sensitivity increases. Imports are exacerbating this sensitivity, primarily due to weak domestic demand. Moreover, with a weakening ruble, there is a tangible risk of a significant uptick in Chinese steel imports - currently, the strong ruble dampens the appeal of the Russian market for exporters," the Severstal CEO added.
He stressed that the key issue for Russian metallurgists regarding steel imports lies not only in lower pricing, but also in the added risks of underconsumption within the domestic market.
Severstal is a vertically integrated mining and steel company and one of the largest steel producers in Russia. Its key asset is the Cherepovets Steel Mill, which has an annual production capacity of approximately 12 mln tonnes of steel.
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