Bright future ahead for Russia's steel industry

Addressing the Steel Success Strategies Europe Conference in Paris, Severstal CEO Alexey Mordashov shared his views on whether Russia has already joined China and India as one of the main drivers of growth in the world steel industry.
 
Mr. Mordashov described Russia as a rapidly developing economy, which has already become one of the top 10 global economies following seven successive years of growth at around seven percent per annum. He added that with foreign currency reserves amounting to $450 billion and a public debt of only about eight percent of GDP, which is one of the lowest in Europe, Russia is in a very strong economic position at the current time. GDP per capita is expected to hit $18,000 in 2015 when Russia can become the largest economy in Europe.
 
Mr.Mordashov stressed that as a result of its strong economy steel consumption has boomed in Russia, with finished steel consumption having increased by 17 percent over the past year. The construction, oil and gas and machinery industries are driving this increase in steel consumption. A number of steel projects are in the pipeline to tap into the potential in Russia.
 
Russia's construction steel industry is growing at a fast rate and, in this context, Severstal is planning three new mini-mills, of annual capacities of one milllion tons each, increasing the share of long products to 27 percent from 19 percent, Mordashov confirmed. He also said that a heavy section EAF plus a rolling mill plant are also on the way in the Cherepovets area. In addition, Severstal is planning to move further downstream to address growing niches in the Russian domestic market.