Russian construction steel demand should increase in 2021, driven by rebar after its consumption fell in 2020, says general director of Evraz trading arm Metall Inprom (EMI) Sergei Sintsov.
EMI is a large player in the market for processing rolled metal products for construction purposes. In recent years, the company has been actively introducing the processing of structural shapes.
“We expect an increase in the consumption of rebar within 3-5% on-year; this is the most capacious segment of the market for rolled products for construction purposes,” Sintsov says in an interview on the EMI website. “We also expect insignificant growth in the rest of the construction profiles.”
In 2021, the dynamics of the domestic market will largely depend on external factors – primarily the pandemic and economic situation, he comments. The direction of the global steel market will also play a significant role.
“As for the production of metal structures, the key influence on the development of this segment will traditionally be provided by large infrastructure projects, which are highly dependent on both project financing and the economic environment,” Sintsov observes.
In 2020, parent company Evraz’s crude steel output declined 1.3% on-year to 13.81 million tonnes (see Kallanish passim). Russian output inched up 0.8% to 12.1mt but North America’s declined 15.1% to 1.58mt, on oil and gas market turbulence affecting demand.
Consolidated 2020 steel product sales declined 3.1% to 13.1mt, with sales of semis rising 6.1% to 6.18mt on higher slab and billet volumes in export markets.
