“In general, in 2023, we expect demand in Russia to increase by 3-5%, construction will be a significant driver,” said Ilya Nechaev, MMK’s investor relations manager.
In the first half of the year growth in demand for steel products amounted to 10-12%, primarily due to the construction sector, where consumption increased by 14-16%. These are more optimistic estimates than that of another manufacturer - Severstal, which estimated demand growth in the first half of the year by 8%.
MMK, which has a 16% to 17% share in Russia, sees no problem with increased competition in the domestic market after external sanctions, as export-oriented companies have filled the niche of outgoing imports.
The company increased sales of steel products in the first half of the year by 11.1% yoy to 5.826 million tons due to favorable market conditions in Russia and neighboring countries.