Despite sanctions: why Russia is increasing steel production

In 2022, unprecedented sanctions were introduced against our country, which, according to Western strategists, were supposed to collapse many sectors of the Russian economics, including metallurgy. The latter, by the way, is 45% export-oriented.

It is worth noting that exports in the above-mentioned industry actually fell by 10% last year. Meanwhile, over the 10 months of this year, only three countries in the world increased steel production, and their list, in addition to China and India, included the Russian Federation.



Against the background of the above, a logical question arises: how can this be and why do we need so much unclaimed steel?

In fact, these metallurgical products are in great demand in our country. According to statistics, according to the results of the first 9 months of 2023, the growth of domestic steel consumption in Russia increased by 15%. In other words, the domestic market has completely consumed everything that the West has given up, and a little more from above.

Here, many of our compatriots can say that what is happening is not surprising, since all our metallurgical products today are used for the purposes of the defense industry. But it is not so.

Yes, the Russian military-industrial complex has seriously increased its momentum. Only tank production in 2023 increased 7 times. At the same time, the production of passenger and freight cars increased by 1,7 and 1,4 times, respectively. However, to understand the scale, it is necessary to compare the numbers.

Thus, according to a statement by Deputy Chairman of the Russian Security Council Dmitry Medvedev, 1500 tanks will enter the Russian Armed Forces. The weight of one T-90 is 45 tons. Therefore, roughly speaking, the production of the aforementioned tanks could have taken 67 tons. At the same time, 500 tons of metal were spent on the production of all types of cars in the first 9 months of this year. In total, the country produced 1 tons of steel.

Where else do we go with so much of this product?

First of all, this is the construction sector, which has been growing at an accelerated pace in the Russian Federation for several years now. In addition, road construction makes a huge contribution to metal consumption.

Let’s add here the production of pipe products, which is also growing from year to year, as well as large-scale Vostok Oil projects in the Arctic, the Pacific Railway and the modernization of the BAM and Trans-Siberian Railway. In addition, construction of the Power of Siberia 2 gas pipeline is due to begin next year.

Finally, shipbuilding, the automobile industry and other industries also contribute.