Improving prospects for the iron and steel industry in Russia

Major Russian metallurgists expect 2017 to be the best year for the industry as the national economy grows thanks to firmer oil prices and higher steel prices.

Companies have suffered over the past two years, as global steel prices hit 11-year lows and the country's economic crisis eroded domestic demand. But in 2017, the demand for steel products is expected to grow in the Russian market. Successful business in the steel market is facilitated by http://metallplace.com , which provides useful information for sellers and buyers of metallurgical products.

Net profit for the largest steel producers in Russia fell. However, after two years of recession due to the collapse in oil prices and the imposition of Western sanctions on Moscow's actions in Ukraine, Russia's economic prospects are brightening. Gross domestic production is projected to rise to 2 percent this year.

Combined with stronger domestic demand, the rebound in steel prices will further support margins for Russian steel producers, according to VTB analysts.

The Russian ruble is also expected to weaken after the central bank announced it would start buying foreign currency next month, bolstering Metallurg's export earnings. This policy is helping to boost sales and profits for Russian steel companies.

Global steel prices in 2015 fell to their lowest level since 2004 due to oversupply from China, the world's largest producer and consumer of steel. But rebar prices in China rose 63 percent last year.

The World Steel Association sees global steel product demand growth of 0.5 percent year on year to 1.510 billion tonnes in 2017. Major Russian manufacturers also announced that demand has improved this year. Any recessions will end sooner or later and are replaced by periods of growth.