According to the state-owned RIA Rating agency, steel output in Russia will most likely decrease this year, following a strong performance in 2023.The Russian steel industry experienced one of its best years in history in 2023. However, the agency warns that the industry will face more challenging conditions in 2024.Firstly, foreign trade restrictions are expected to tighten further. The report notes that towards the end of 2023, the United States began implementing a mechanism of secondary sanctions, which is anticipated to create problems for Russian steel exports at the start of 2024.Additionally, the report suggests that the Russian steel industry will be impacted by the gradual depletion of existing export contracts, as well as difficulties in finding new markets for its products. This is due to the continued pressure from Western sanctions and the reluctance of some countries to engage in trade with Russia.The agency also highlights that the Russian steel industry will have to contend with rising production costs, driven by factors such as higher prices for raw materials, energy, and logistics. These increased expenses are expected to squeeze profit margins for steel producers in the country.Despite the challenging outlook, the report suggests that the Russian government may introduce measures to support the domestic steel industry, such as providing subsidies or implementing protectionist trade policies. However, the effectiveness and longevity of such interventions remain uncertain.The forecast of a decline in Russian steel output in 2024 comes at a time when the global steel industry is grappling with various headwinds, including supply chain disruptions, fluctuating demand, and geopolitical tensions. The Russian steel sector's performance will be closely watched, as it navigates the complex landscape of international trade and economic sanctions.