Severstal Forecasts Decline in Russian Domestic Steel Consumption for 2026 and 2027

MOSCOW, September 9. /TASS/. Severstal expects overall steel consumption on the domestic market to decline both in 2026 and 2027, Director of Severstal Distribution (part of Severstal) Viktor Romanovsky told reporters.

"Our sense is that there will be a slight decline [in steel consumption - TASS] in 2026, and there will also be a decline in 2027," Romanovsky said in response to a question about steel consumption forecasts, including in the small and medium-sized business segments.

According to Romanovsky, some individual market segments may see some growth. In particular, he expects a slight increase in demand in the automotive, energy, and infrastructure sectors.

Earlier, Severstal CEO Alexander Shevelev said the company expected demand to decline by around 7-9% in 2026 due to the cooling of the economy amid a high key interest rate, as well as the strengthening of the ruble, which makes imports more affordable.

Severstal is a vertically integrated mining and steel company and one of Russia's largest steel producers. The company's key asset is the Cherepovets Steel Mill, which has an annual production capacity of around 12 mln metric tons of steel. Severstal's largest shareholder is Alexey Mordashov, who owns approximately 77.03% of the company's shares.