Russian Steel Industry in COVID Era

Metallurgy.Russia’2021, Litmash.Russia’2021 and Tube.Russia’2021 exhibitions held in Moscow on June 8-10 brought together a number of Russian and international suppliers of industrial equipment for various industries. The exhibitions revealed the latest market trends, new and old problems of the Russian industry as well as and its achievements.

The Russian industry in Q2, 2021 recovered from the recession caused by the last year’s COVID’19 restrictions. Thus, according to Rosstat, the industrial production index in April 2021 grew by 2.5% as compared to the corresponding period of the pre-crisis year of 2019, whereas in May: by 2.9%. The growth rate in the metal processing industry reached 6.1 and 6.3% respectively. The raw materials segment, however, is an outsider. 

Did the exhibitors notice the recovery? Some noticed all right! “The break-point was passed in spring 2021. All of a sudden we started receiving many inquiries from steel producers”, said Anton Serdukov, Shanghai NanYang Electrical Equipment, a big Chinese supplier of cable equipment.

Some Russian producers assess the situation the same way. “We have enjoyed a booming demand from all customer groups since 2H 2020. We hardly satisfy it, sometimes even have to refuse orders. Our production capacities are charged 120%”, said Vitaly Shurygin, General Manager, Romek, a Russian supplier of handling equipment.

Russian equipment producers however, faced some problems in the last few months. One of the main problems is growing prices for steel. Among other problems are lack of well qualified staff and components. To find solutions, the problems need to be viewed from different angles.