Steel Market in Russia Grows Due to Drones and Repairs

In Russia, there is a recovery in domestic demand and prices for steel. The main factors for this growth are the revival of construction projects and the need to repair facilities damaged by strikes. Demand for metal products intensified in July and continued to rise in August. In the Moscow region, the price of hot-rolled coils increased by 30% since January, while the cost of construction rebar rose by 74%. This led to the initiation of an investigation by the Federal Antimonopoly Service of Russia. The revival of production at the Severstal, MMK, and NLMK plants is linked to drone protection and repairs, where rebar is used to strengthen shelters and protective barriers around oil refineries. Strikes on ports and oil refineries have caused billions in damage that require restoration. Additionally, state and infrastructure projects have also gained momentum, including the construction of a high-speed railway. However, experts believe this is a temporary phenomenon, as domestic metal prices began to decline at the end of August. Russian steel exports are facing logistical disruptions, with shipments through the Black Sea port in Novorossiysk blocked for more than two weeks, negatively impacting the export revenues of producers. The EU has also reduced quotas for steel imports to protect its market.

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