Russian metallurgists reduced production of cast iron, steel and finished rolled products in August compared to July
The output of steel and cast iron, in particular, showed a decrease for the first time in the summer months. By the end of the third quarter, the decline in the industry may reach a maximum, and recovery is possible no earlier than the second half of 2026.
Illustrative photo: Severstal.
In August, Russia produced 4 million tons of pig iron, 5.5 million tons of steel, 4.9 million tons of rolled products and 0.9 million tons of pipes, which is 6.8%, 4.5%, 2.3% and 18.3% less than a year earlier, according to data from the Chermet Corporation, cited by Kommersant.". The output of pig iron (by 100 thousand tons), steel (by 200 thousand tons) and rolled products (by 100 thousand tons) decreased month by month. On a monthly basis, the production of cast iron and steel decreased for the first time in the summer months, according to data from the Chermet Corporation.
Following the results of eight months, the output of pig iron decreased by 1.7% year—on—year, to 33.8 million tons, steel and rolled products - by 5.4% in each case, to 45.6 million and 40 million tons, pipes - by 13.5%, to 7.3 million tons.
The metallurgical companies did not provide comments to the publication.
Ilya Makarov, Director of the ACRA Corporate Ratings Group, believes that the decline in production in August is a seasonal phenomenon. "During the peak of the holidays, the companies decided to reduce smelting in order to reduce inventories. It's too early to talk about any trend," he believes. Alexander Semin, director of Gazprombank's Economic Forecasting Center, adds that metallurgists use the period of declining domestic demand to carry out repairs on their main equipment.
But there are other factors that have an impact on the market. Learn more on the website kommersant.ru