Demand for steel products in Russia fell by -20% on-month in March, says Russian distributor BVB Alliance, Kallanish notes.
This was caused by the uncertainty surrounding the spread of Covid-19, a shortage of working capital for businesses, an increase in rental costs and increased competition, the firm says. Russian transport companies have also increased the time and cost of delivery.
At the same time, there has been an increase in the prices of a number of categories of alloy steel products for special applications.
Logistics restrictions in Europe, China and Taiwan have led to a -50% reduction in the volume of carbon and alloy steel imports into Russia. Since the introduction of quarantine measures in a number of countries in the CIS and Europe, logistical issues have seen exports decline by -35%.
Due to the drop in demand for steel, BVB Alliance has reduced its marketing budget, the firm says.
The company is a major alloy, stainless and carbon steel distributor and wholesaler in Russia and the CIS. Its main suppliers are Severstal, Chelpipe, MMK and other Russian steelmakers. The company has 14 warehouses in Russia, and four in Kazakhstan, Belarus and Kyrgyzstan. Its main Markets are America, Africa, Asia, the Caribbean, Europe, Oceania, and the Middle East.