Severstal anticipates a contraction in Russian steel demand by 5% to 7% in 2024 due to high borrowing costs affecting customer investment plans. The company has observed that the construction and mechanical engineering sectors, which are major consumers of steel, are experiencing reduced activity and investment.

However, Severstal expects the market to stabilize in 2025, maintaining consumption levels similar to those in 2024. This outlook comes as the Bank of Russia recently raised its key interest rate to 21%, the highest since the early 2000s, further straining financial conditions for businesses.