OREANDA-NEWS  According to the results of the first half of 2024, metal consumption in Russia amounted to 23.3 million tons, which is 0.6% more than in the same period last year, according to the message from Severstal.

"The results of the half-year are close to the values of the same period last year. Over the 6 months of 2024, metal consumption in the Russian Federation increased by 0.6%. According to Severstal, the situation will remain uncertain until the end of the year, taking into account such factors as an increase in the key rate, a shortage of personnel in various sectors of the economy, and the cancellation of preferential mortgages," the report says.

At the same time, there are positive trends in almost every segment: a boom in the market of individual residential construction, an increase in the production program of the largest automakers, an increase in supplies to gas companies after several quarters of lull in the industry, Severstal analysts note.

According to the results of the first six months, consumption growth in the mechanical engineering sector amounted to 6%, to 2.6 million tons. Consumption in the energy segment showed a decline of 4.7% year-on-year. The volume growth in the construction sector amounted to 0.7%, to 18.2 million tons.

Metal consumption in the second quarter increased by 3.1% to 12.4 million tons compared to the same period in 2023. The main driver was the construction industry, its growth amounted to 3.3% due to an increase in inventories from processors and consumption volumes in individual housing construction, the company said. In the engineering segment, consumption increased by 2%, and in the energy sector - by 2.7%.

Severstal is one of the world's largest vertically integrated steel and mining companies with major assets in Russia and a small number of enterprises abroad. In 2023, 11.3 million tons of steel were produced.