According to a press release sent to the Russian press agency TASS, Russian steel producer Severstal stated that steel demand in Russia’s construction sector is expected to decline by 10 percent by the end of 2025, reflecting broader weakness in metal consumption across the country’s main steel-consuming industries.
Severstal stated that the expected contraction in construction-related steel demand is linked to several factors, including high key interest rates, the low number of newly launched construction projects, and the scaling back of preferential financial instruments previously supporting investment activity.
Severstal added that steel consumption is expected to decline across all major consumer sectors in 2025. In the mechanical engineering sector, the company estimates that steel consumption could fall by as much as 32 percent, reflecting weaker industrial output and investment activity, while the energy sector is also expected to see a significant downturn, with steel consumption projected to decrease by 19 percent due to the postponement of energy projects and lower numbers of new oil wells.