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Russian steel consumption forecast: independent expert

The II Conference “Steel consumption in Russia” was held in Moscow on February 20.

A Metal Expert Consulting representative gave a report there called “Russian steel consumption forecast: independent expert”.

The report says no major improvements now seem likely to take place in the key steel consuming sectors in 2014.

This means steel holdings need to give priority to:

1. An increase in the domestic market share through the marketing strategy rather than investments. At the moment, the increase can allow efficient players to receive the highest dividends.

2. Business in external markets, contributing to a company’s financial stability and a rise in the domestic market share. Profits in strong currency again become an important competitive advantage of integrated companies.

3. Integration of certain cheap but promising assets during a capital outflow period. Deals made at the “bottom” of the market may prove to be the most profitable even if the asset is sold later.

4. Cooperation with the government on stimulation of consuming industries. The developments of 2008-2009 show the actions taken to stimulate demand are the most important during the crisis.

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