The Russian government is preparing a plan to support the metallurgical industry, which faced a decline in production in the second half of last year, Deputy Minister of Industry and Trade Mikhail Yurin said on Tuesday.
According to him, the package of measures has already been discussed with Industry Minister Anton Alikhanov and industry representatives and will be launched in the near future.
Deputy Director of the Metallurgy Department of the Ministry of Industry and Trade Andrei Savelyev said at a round table in the Federation Council that the possibility of reducing the tax burden for metallurgists is being considered. "The good times are over after all," Savelyev lamented. For those metallurgical companies that operate at a profit, the profitability has decreased by "about 10 percent," while for electrometallurgical plants and some vertically integrated companies it is "near zero," or even has a negative cash flow, the official listed (he was quoted by Interfax).
According to Savelyev, the Ministry of Industry and Trade is considering the idea of changing the formula for calculating the excise tax on liquid steel so that metallurgists pay less to the budget. Last year, they transferred 64 billion rubles, and the Ministry of Finance included 69 billion rubles in the 2025 treasury project.
According to the World Steel Association, steel production in Russia last year fell by 7%, to 70.7 million tons, and this was the worst result among all the largest manufacturers. In China, for example, steel production fell by 1.7%, while in India it grew by 6.3%.
MMK, the largest metallurgical plant in Russia, reduced steel production by 14% by the end of the year, to 11.95 million tons, the worst result in the last 5 years. Iron smelting fell by 4.5%, to 9.49 million tons, and the company's sales decreased by almost 10%.
Cut off from Western markets by sanctions, steelmakers have been unable to find new clients in Asia. According to Metals & Mining Intelligence (MMI), Russian steel sales abroad fell by 22% to 14.1 million tons in January–September. Steel pipe exports fell fourfold, from 436,000 tons to 100,000.
Demand for steel within Russia fell by 3 million tons to 41 million, mainly due to problems with developers who are forced to curtail projects due to the high Central Bank rate, estimates Maxim Khudalov, chief strategist at Vector Capital. Demand for steel for the auto industry also did not live up to expectations, the expert points out, since Chinese manufacturers do not want to “stamp out” parts in Russia, unlike German ones, who built factories.
According to him, the package of measures has already been discussed with Industry Minister Anton Alikhanov and industry representatives and will be launched in the near future.
Deputy Director of the Metallurgy Department of the Ministry of Industry and Trade Andrei Savelyev said at a round table in the Federation Council that the possibility of reducing the tax burden for metallurgists is being considered. "The good times are over after all," Savelyev lamented. For those metallurgical companies that operate at a profit, the profitability has decreased by "about 10 percent," while for electrometallurgical plants and some vertically integrated companies it is "near zero," or even has a negative cash flow, the official listed (he was quoted by Interfax).
According to Savelyev, the Ministry of Industry and Trade is considering the idea of changing the formula for calculating the excise tax on liquid steel so that metallurgists pay less to the budget. Last year, they transferred 64 billion rubles, and the Ministry of Finance included 69 billion rubles in the 2025 treasury project.
According to the World Steel Association, steel production in Russia last year fell by 7%, to 70.7 million tons, and this was the worst result among all the largest manufacturers. In China, for example, steel production fell by 1.7%, while in India it grew by 6.3%.
MMK, the largest metallurgical plant in Russia, reduced steel production by 14% by the end of the year, to 11.95 million tons, the worst result in the last 5 years. Iron smelting fell by 4.5%, to 9.49 million tons, and the company's sales decreased by almost 10%.
Cut off from Western markets by sanctions, steelmakers have been unable to find new clients in Asia. According to Metals & Mining Intelligence (MMI), Russian steel sales abroad fell by 22% to 14.1 million tons in January–September. Steel pipe exports fell fourfold, from 436,000 tons to 100,000.
Demand for steel within Russia fell by 3 million tons to 41 million, mainly due to problems with developers who are forced to curtail projects due to the high Central Bank rate, estimates Maxim Khudalov, chief strategist at Vector Capital. Demand for steel for the auto industry also did not live up to expectations, the expert points out, since Chinese manufacturers do not want to “stamp out” parts in Russia, unlike German ones, who built factories.
