(Minews) - OAO Novolipetsk Steel (NLMK), which last year became Russia’s largest steelmaker by output, expects global demand for the metal to expand this year even as China slows.
“We expect global steel demand to grow by 1.5 percent to 2 percent in 2015, while the pace of growth will be different in different regions,” Chief Executive Officer Oleg Bagrin said in e-mailed comments late yesterday. European, U.S. and Japanese growth will be strong, while Chinese sales may continue to slow, he said.
The steel industry is being hurt by overcapacity, leading to sinking prices. Production in 2014 climbed 1.2 percent to 1.7 billion metric tons, the World Steel Association said on Jan 22.
NLMK, as Novolipetsk Steel is known, sees flat consumption by its main Russian clients in construction, infrastructure and energy this year, Bargin said.
While steel prices, down about 20 percent in the past year, will still be affected by lower raw-material costs, the chance of further declines in iron-ore and coal prices is limited, he said. Producers will seek to bring local prices back into line with exports after the weaker ruble pushed them lower, he said.
