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Metal consumption in Russia in 2025 will be under pressure

Metal consumption in Russia in 2025 will be under pressure from a slowdown in the growth rate of new housing construction in the Russian Federation and high interest rates on loans.

Metal consumption in Russia in 2025 will be under pressure

The share of the construction industry in the structure of rolled metal consumption in the Russian Federation exceeds 70%, noted Victoria Strekalina, Head of the Directorate of the Department of Analytics in the Metallurgical Industry of the Analytical Center for the Fuel and Energy Complex (AC FEC). In 2025, due to a decrease in the volume of preferential mortgages and a high interest rate on loans, residential construction is unlikely to show positive dynamics. 

Maxim Khudalov, chief strategist at the investment company Vector X, believes that domestic demand for metal in Russia will decrease by approximately 4-5% in 2025.

Severstal expects metal consumption in 2025 to remain at the 2024 level, “however, this largely depends on the Central Bank’s monetary policy.” Severstal CEO Alexander Shevelev said in October that the company expects metal consumption in Russia in 2025 to be at the 2024 level.

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