Russia’s metallurgical industry is experiencing its deepest crisis since the start of Russia’s full-scale invasion of Ukraine. In July, output fell by 10.2%.

Russia’s metallurgical industry is experiencing its deepest crisis since the start of Russia’s full-scale invasion of Ukraine. In July, output fell by 10.2%.

Source: Center for Countering Disinformation

Details: According to data from the Russian Federal State Statistics Service Rosstat, this is the worst figure in at least three and a half years.

A collapse has been recorded at the sector’s key companies.

Magnitogorsk Iron and Steel Works reduced steel output by 18%, sales at Mechel were down 11% and the Pipe Metallurgical Company lost up to 22% of sales. The companies have reported losses amounting to billions.

Quote: “The reasons for the decline are obvious: sanctions, the loss of external markets, a sharp fall in domestic demand for metal in building and mechanical engineering, as well as the tough policy of the Central Bank of Russia, which is holding back investment.”

Background: Russian steelmakers have recorded a sharp deterioration in financial results due to falling demand, high lending interest rates and sanctions that restrict exports.

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