Russian steel industry expected to unite in few years
Yesterday Severstal's director general deputy stated that in a few years Russia steel industry will likely be consolidated under two or three major steel maker together with a few small niche market producers. As a matter of fact, four big steel mills already produce 80% of the country's steel production, namely Magnitogorsk, which is the largest producer in Russia, Severstal, Novolipetsk and Evraz Holding. Although Russia has the sufficient financial resources and experience to conclude the mergers on its own, it is believed that Russia would fail to end up with one or two major steel maker due to the country's huge size and logistics costs. Following his comments, talks over consolidation in the steel sector have started.