According to the data issued by Ministry of Industry and Trade of the Russian Federation, in 2009 the country's domestic consumption of rolled steel products went down by 22.1 percent year on year to 25.7 million mt. Deliveries of Russian origin rolled steel products decreased by 20.5 percent (to 23.3 million mt) in 2009, while imports of these products dropped by 35.1 percent, both compared to 2008.
"The decrease in rolled steel products consumption is due to the decline of demand for pipe-making (billets and strips) and hardware production, as well as due to the slowdown in steel consuming industries (oil and gas, construction, certain branches of engineering, etc.)," reads the ministry's statement.
Russia's domestic consumption of steel pipes in 2009 was estimated at 5.7 million mt - down 23.2 percent year on year, of which five million mt were of Russian origin - down 21.3 percent year on year, and 650,000 mt were of foreign origin - down 35 percent year on year.
Considering the change of situation in the world market caused by the financial crisis, in 2009, Russia registered a decrease in steel product output, accompanied by falling prices for steel products both in the world and domestic market. The decrease of prices in the Russian domestic market was in line with world market trends, but at a slower pace. In Q4 2009 the situation in Russia started to improve and a five to seven percent increase quarter on quarter was registered in domestic prices for steel products (longs and flats) and for raw materials.