Russia reduced steel output in the first half of the year

According to the results for the first half of 2015, the drop in steel production in Russia amounted to only 0.2 percent to 34.9 million tons, while the output of rolled products decreased by 0.6 percent to 30 million tons. During the reporting period, the production of steel pipes increased by 9.8 percent and amounted to 5.6 million tons.

In June 2015, steel production in Russia amounted to 5.6 million tonnes, which is 7.5 percent less than in June last year. Industry experts explain this by the fact that in the first quarter of this year, there was a sharp increase in demand for steel products amid fears about the strengthening of the devaluation of the ruble, which caused the filling of warehouses.

But now the situation has changed, and demand for steel in Russia and the CIS does not imply strong seasonal growth, and by the end of the year is likely to decline by 15 percent. Only pipe production increased during the month, but their largest consumer, Gazprom, canceled several tenders.

Steel production in Russia has been falling over the last two months of the second quarter of 2015. So, back in April, steel production increased by 0.6 percent, but fell by 1.6 percent in May. And in June, Russian steelmakers cut their steel output by 7.5 percent to 5.6 million tonnes, according to Worldsteel. Although in June there was an increase of 6.6 percent in the production of pipes.