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CIS mini-mills. Changes in Russian longs market balance with launch of new facilities


On April 3, the international seminar “Metallurgical Mini-mills and Electric Steelmaking – Practical Recommendations for CIS” was held in Moscow. The representative of Metal Expert Consulting delivered the report “Changes in Russian longs market balance with launch of new facilities.”

Key issues of the report:

- as of early 2014, some 50 mini-mills with aggregate capacity of 35 million tpy operated in CIS. With their launch, the number of steelmakers has reached 73, total steel capacity has increased to 144 million tpy.

- low steelmaking capacity utilization (under 40%) of Kazakh, Ukrainian and Russian mini-mills has resulted in a decrease in investment activity in most countries of the region;

- At present, Russia is considering some 10 mini-mill projects (3.1 million tpy). Investors have rejected the 5mtpy 10 mini-mill programme;

- Russian market for finished longs is imbalanced by product types and regions. Taking into account all implemented projects and the average capacity utilization in recent years, the excessive capacity amounts to about 6 million tpy;

- competition in longs segment will be tightening in coming years.

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