Russian consumption of stainless steel is growing stably

Statistics affirm that despite the sharp price hike in 2006, the amount of consumed flat-rolled stainless steel in Russia, in comparison to 2005, increased 16% to 141 thousand tons. According to the USSA’s expert appraisal, the share of imported stainless steel reduced from 81.3% in 2005 to 70.6% in 2006. The reduction was caused by a higher growth tempo of the Russian stainless steel making industry as opposed to the year’s increase of imports. In 2006 Russian stainless steel makers managed to increase flat-rolled steel output by 69.4% to 49 thousand tons.

Exports grew 18.1% to 7.4 thousand tons while imports made only 1.3% to 99.7 thousand tons.

The increase in price for stainless steel is directly dependent on the nickel price. The year of 2006 registered a 137.5% price increase to 34393 USD/tons. This and various concomitant factors will be affecting the prices for stainless in the first quarter of 2007.

According the USSA’s forecasting for 2007, the increase in consumption of major stainless steel products will register 16% to 20%. First of all, this will be connected with the onset of carrying out the state-initiated development projects in the sectors of machinery, atomic energy, and aircraft building as well as with the installations of sports buildings and trade areas.

The key issues and directions of the development of the Russian stainless steel market will be discussed at the International Conference ‘Prospects for the Development of the Russian Stainless Steel Market’ that will take place on 22nd March 2007 in Chelyabinsk. The USSA is pleased to welcome you to attend the event and meet with peers in the Russian stainless steel market. (Details).