Russian metallurgy on the brink of collapse: production falls for the second consecutive year

According to hvylya.net: The situation in Russia's steel market is deteriorating, as reported by the Ukrainian Foreign Intelligence Service. Steel production in the country continues to decline: in 2024, a decrease of 8.6% was observed, and in the first quarter of 2025 - a decrease of 7.2%.

According to intelligence information, export steel prices have fallen by 26% in rubles, and domestic demand is also decreasing. Many large producers, including the Magnitogorsk Iron and Steel Works and the Novolipetsk Steel Plant, are facing losses and job cuts.

Against this backdrop, the largest shareholder of Severstal, Mordashov, received 201.8 billion rubles in dividends, of which 200 billion came from Severstal. At the same time, the company's management publicly warns about the threat of a complete halt to production in the industry.

The Ukrainian Foreign Intelligence Service emphasizes that despite government promises regarding potential tax increases for metallurgists and the launch of infrastructure projects, financial difficulties and budget deficits complicate the implementation of such measures. This may lead to social tension due to the threat of rising unemployment in industrial regions.

According to intelligence data, the situation in the steel market in Russia is becoming increasingly tense due to declining production, falling prices, and the threat of rising unemployment in the metallurgy sector, which could cause social problems in certain regions of the country.