Metallurgy in Russia

Main article: Russian economy

Metallurgy in the world

Main article: Metallurgy in the world

Global Metals Market

Main Article: Metals (Global Market)

Rare earth metals

Main article: Rare earth metals in Russia

Ferrous metals

Black metals include iron, chromium, manganese and their alloys, such as steel, cast iron, ferroalloys, etc.

Steel and cast iron are iron-based alloys with carbon as their primary complementary element, collectively called iron-carbon alloys.

Steel

2022: Decline in steel production in Russia by 7.2% to 71 million tons amid conflict in Ukraine

Steel production in Russia in 2022 amid the conflict in Ukraine amounted to 71.5 million tons, which is 7.2% less than a year earlier - World Steel Association.

Cast iron casting

Main article: Cast iron casting (Russian market)

Cast iron is a product obtained by smelting iron ore in a blast furnace, which is mainly used for steel production and casting.

Cast iron (a liquid, iron-carbon alloy with a carbon content of more than 2.11%) can be produced by melting cast iron in a melting furnace.

A ferroalloy is an alloy consisting of iron and silicon, manganese, chromium, titanium and other elements.

Ferroalloy is one of the raw materials for steel production and is used as a deoxidizer and additive of alloying elements for steel production.

An iron-carbon alloy with a carbon content of less than 2.11% is called steel, and steel is obtained by melting cast iron in a steelmaking furnace in accordance with a certain technological process.

Ferrous Scrap Market

Main article: Ferrous metals scrap market in (Russian market)

Non-ferrous metals

Main article: Non-ferrous metals (Russian market)

Non-ferrous metals collectively denote all metals except iron, manganese and chromium. Broadly speaking, non-ferrous metals also include non-ferrous alloys such as copper, tin, lead, zinc, aluminum, brass, bronze, aluminum alloys, and bearing alloys.

Copper

Main article: Copper mining and production

Chronicle

2024

In the Rostov region for ₽3,6 billion built a plant for the production of reinforcement

At the end of October 2024, it became known that Don-Metal completed the construction of a large metallurgical plant for the production of hot-rolled valves in Kamensk-Shakhtinsky, Rostov Region. The volume of investments in construction amounted to ₽3,6 billion, the technical launch of production is scheduled for December 2024, and the commissioning of the facility is scheduled for the first quarter of 2025. here.

A plant for the production of unique metal structures for oil and gas companies was launched in Primorye for ₽300 million

In October 2024, a plant for the production of unique metal structures for large Russian oil and gas companies operating on the shelf of the Sea of ​ ​ Okhotsk began work in the Primorsky Territory. The project was implemented by the Nakhodka Ship Repair Plant (NSRZ), a resident of the free port of Vladivostok (SPV), with investments of about ₽300 million. Read more here

A plant for the smelting of heat-resistant cast iron for the automotive industry was launched in the Yaroslavl region for 650 million rubles

In the Yaroslavl region in September 2024, a new plant for the smelting of heat-resistant cast iron for the automotive industry was launched. Investments in the project amounted to ₽650 million. The Foundry and Mechanical Plant (LMZ Rybinsk) has opened a new workshop specializing in the production of high-quality components using gasifying model (LGM) casting technology. Read more here.

The largest zinc concentrate plant in the Russian Federation has been launched in Buryatia. 103 billion rubles invested in it

In September 2024, the largest zinc concentrate plant in Russia was launched on the basis of the Ozerny Mining and Processing Plant (GOK) in the Republic of Buryatia. The grand opening took place with the participation of Russian President Vladimir Putin, Deputy Prime Minister of the Russian Federation Trutnev and other dignitaries. Total investment in the project amounted to ₽103 billion. Read more here.

2023

Production of raw materials for zinc production in Russia increased by 3% to 564.2 thousand tons

In 2023, the production of zinc concentrates in Russia reached 564.2 thousand tons. This is 3% more compared to 2022, when 547.8 thousand tons of such products were produced. This is stated in the review of BusinesStat, published in early October 2024.

Zinc concentrates are designed to recover zinc metal and related valuable components. Significant players in the industry are Gaisky GOK PJSC, Uchalinsky GOK JSC, Silver Magadan JSC, Novoangarsky Enrichment Plant LLC and Svyatogor JSC. For domestic consumption, zinc concentrates are produced at the processing plants of the holding company Ural Mining and Metallurgical Company JSC and the enterprises of Russian Copper Company JSC.

According to estimates, in 2019, 566.4 thousand tons of these products were produced in Russia. In 2020, against the background of the COVID-19 pandemic, a 5.9% decline followed - to 532.8 thousand tons. In 2021, mining and processing enterprises received 615.5 thousand tons of zinc concentrates, which corresponds to an increase of 15.5% on an annualized basis. The positive dynamics was due to the revival of related industries after the lifting of strict quarantine restrictions.

But in 2022 there was another decline: due to the worsening geopolitical situation, production decreased by 11%. JSC Ural Mining and Metallurgical Company and JSC Russian Copper Company were included in the blocking sanctions list of the United States and Britain against companies engaged in "activities in industries of strategic importance" for Russia. In 2023, the market began to recover - including thanks to government measures aimed at increasing domestic demand for metallurgical products due to the development of industrial production and reducing indirect imports.^[1]

Production of raw materials for lead production in Russia increased by 15% over the year, to 405.9 thousand tons

In 2023, the production of lead concentrates in Russia reached 405.9 thousand tons. This is 15% more compared to 2022, when the volume of production of these products was 353 thousand tons. The increase was facilitated by the development of new supply chains to foreign markets, as well as an increase in demand from China. This is stated in the review of BusinesStat, published in early October 2024.

lead concentrate is intended for production of metal lead and accompanying valuable components. Among the significant players in the Russian market are named JSC "Silver Magadan," LLC "Novoangarsky Enrichment Plant," LLC "Lunsin," LLC "Baikalrud," JSC "Siberia-Polymetals," etc.

According to estimates, in 2019, 410.5 thousand tons of lead concentrates were produced in the Russian Federation. In 2020, against the backdrop of the COVID-19 pandemic, a 4.9% reduction was recorded - to 390.5 thousand tons. In 2021, output increased by 6.1%, reaching 414.3 thousand tons. However, a 14.8% decline followed in 2022.

Due to the prevailing geopolitical situation, some companies producing lead concentrates were included in the blocking sanctions list of the United States and Britain. At the same time, individual enterprises managed by foreign investors have reduced production, fearing difficulties with further supplies abroad. These factors had a negative impact on production in 2022. But already in 2023, the industry began to recover. According to BusinesStat estimates, a number of large investment projects in the fields being prepared for operation will contribute to the further positive dynamics of lead concentrate production. In particular, at the end of 2024, an enterprise for the production of zinc and lead concentrates at the large Ozernoye deposit in the Republic of Buryatia will begin work.^[2]

Production of metal products for construction in Russia increased by 36% over the year and reached a record 4.7 million tons

Production of steel products for construction needs in Russia increased by 36% over the year, reaching a record 4.7 million tons. These data were published in the spring of 2024 in an analytical report of the Steel Construction Development Association (ARSS), prepared in conjunction with the INFOLine agency.

According to Forbes, the growth in the production of construction metal structures and sheet metal products has become one of the significant factors supporting the active development of the construction sector in Russia. The increase in the output of structures such as building and structure frames, bridge and road structures, as well as power line supports and communication masts, played a key role in reaching record levels.

Production of metal products for construction in Russia increased by 36% to 4.7 million tons

According to the report, the Russian market for structural steel for 2023 also showed a significant increase in consumption, increasing by 30% to 2.6 million tons. The main increase in demand was noted in the segment of infrastructure construction, as well as in the construction of logistics, social and agricultural facilities. It is expected that in 2024 the main driver of growth in demand for metal structures will be associated with infrastructure and social construction.

According to the forecasts of ARSS specialists, in the coming years the demand for steel structures will also be supported by the active development of residential construction in Russia. The introduction of a steel frame in housing construction, which is planned as part of the activities of the roadmap of the Ministry of Construction of the Russian Federation for 2023-2026, will reduce the cost of projects and reduce the time for their implementation by one and a half times.

Along with the growth in the production and consumption of metal products, there is an active development of the construction industry as a whole. In 2023, the total volume of real estate commissioned in Russia increased by 9.3% and amounted to 175 million square meters. m. At the same time, the Moscow region continues to lead in terms of construction, providing 20.1% of the total commissioning of residential and non-residential buildings in the country.^[3]2023

Decrease in pipeline valves sales by 8.7% to 442.3 thousand tons

In 2023, sales of pipeline valves in Russia amounted to about 442.3 thousand tons. The decrease compared to the previous year, when approximately 484.6 thousand tons of these products were sold, was recorded at the level of 8.7%. This is the first decline since 2019, as stated in the BusinesStat materials released at the end of March 2024.

By pipeline valves, the authors of the report mean various technical devices, fasteners and parts installed on pipelines, tanks and units designed to control the flows of liquid, gaseous, gas-liquid and powder working media by changing the flow area. In Russia, one of the leading suppliers of such products is TMK Steel Technologies, "," "Trubodetal Joint Stock Company," "Corvette Gazsnabinvest" and "Oil and Gas Equipment Plant Technovec."

According to estimates, in 2019, sales of pipeline valves in the Russian Federation amounted to 268.5 thousand tons. In 2020 and 2021, there was an increase of 19.8% and 14.7%, respectively, to 321.6 thousand and 368.9 thousand tons. Growth peaked in 2022, when sales jumped 31.4%, reaching 484.6 thousand tons. The steady positive dynamics in 2020-2022 is largely due to an increase in the revenue of oil and gas companies, which are one of the main consumers of pipeline valves. The increased revenues stimulated investment activity in the industry, which led to an increase in demand for pipeline valves. In addition, such products are in demand in the housing and communal services sector in connection with the repair of pipelines for various purposes.

Experts attribute the decline in 2023 to a decrease in revenues in the oil and gas sector. At the same time, sales of Russian-made fittings fell, while the volume of sales of imported products increased.^[4]

7% increase in steel pipe shipments to 12.1 million tonnes

In 2023, the volume of steel pipe shipments in Russia increased by 7% and reached a record 12.1 million tons. These data were presented by the Pipe Metallurgical Company (TMK) at the end of May 2024. The increase in shipment volumes indicates a stable demand for pipe products in various sectors of the economy.

The energy sector received 5.6 million tons of pipe products, while 6.5 million tons were delivered to non-energy companies. TMK predicts a steady demand for its products from the fuel and energy complex, and also expects an increase in the need for pipes for industry.

Steel pipe shipments in Russia increased by 7%

According to Rosstat, the volume of sales of TMK pipe products in 2023 amounted to 4.193 million tons, of which 3.431 million tons fell on seamless pipes, and 762 thousand tons - on welded. The representative of TMK noted that the dynamics of production drilling for oil and gas in 2024 may reach 71 km/d against 63 km/d in 2023, which indicates the expected growth in demand for pipe products.

According to Rosstat, production volumes in metallurgy in Russia in 2023 increased by 3.3%. In December 2023, the volume of iron smelting amounted to 4.4 million tons, which is 3% more than in December 2022. Over the year, pig iron production increased by 5.8% and reached 54.6 million tons.

The production of unalloyed steel in December 2023 increased by 13% and amounted to 4.9 million tons. In total, 60.2 million tons of unalloyed steel were produced during the year, which is 7.9% more than in the previous year. At the same time, the production of alloyed steel decreased by 4.1% and amounted to 15.5 million tons.

Rosstat noted that the production of round welded steel pipes with an outer diameter of more than 406.4 mm in 2023 decreased by 16.2% and amounted to 3.5 million tons. However, the production of steel sheet hot-rolled products without additional processing increased by 7.8%, reaching 21 million tons.

The 7% increase in steel pipe shipments in 2023 reflects sustained demand from the energy and industrial sectors. We expect a further increase in the demand for our products in 2024.[5]

Production growth of 3.3%

According to the results of 2023, the volume of metallurgical production in Russia increased by 3.3% compared to 2022. This is evidenced by Rosstat data published at the end of January 2024.

The volume of iron smelting in the Russian Federation at the end of 2023 reached 54.6 million tons, which is 5.8% more than a year ago. In 2023, 60.2 million tons of unalloyed steel were produced, which is 7.9% more than a year earlier. The production of alloyed steel fell by 4.1%, to 15.5 million tons.

The volume of metallurgical production in Russia in 2023 increased by 3.3%

The production of round welded steel pipes with an outer diameter of more than 406.4 mm in 2023 amounted to 3.5 million tons, which is 16.2% less than in the previous year. The production of steel sheet hot-rolled steel without additional processing increased by 7.8%, to 21 million tons.

Structures and parts of structures made of ferrous metals in 2023 were manufactured in the amount of 8.1 million tons, which is 5.7% more than a year earlier. The production of structures and parts of structures made of aluminum increased by 12.9%. Steel hollow seamless pipes and profiles, as well as their fittings, were produced in 2023 by 12.7% more than in 2022.

Demand was spurred by mechanical engineering enterprises, where production increased by 23.3%, the oil and gas industry, which increased pipe consumption by 8%, and, probably, the defense industry, statistics on which are not published, - said Anna Krysina, director of the Financial Consulting Practice of the Business Profile Group.

In 2023, metallurgists invested heavily in new equipment and technologies to replace those who left. The analytical note of the Bank of Russia "Investment activity in industry in 2023: results of a survey of enterprises" says: two-thirds of 514 companies invested in maintaining and updating capacity. This applies primarily to manufacturers of finished metal products, the regulator indicates.^[6]

Russia in 5 countries in terms of steel production

2022

Growth in consumption of sheet metal products by 1.3% to 2.29 billion rubles

The volume of consumption of sheet metal products in Russia in 2022 reached 2.29 billion rubles, an increase of 1.3% (or 591.94 million rubles) compared to 2021. The market remained on the rise, but in 2021 its growth rate was significantly higher (+ 61.7%). This is evidenced by the data of the market research agency "GuideMarket," which were released in November 2023.

According to analysts, significant fluctuations in the volume of use are associated with changes in the price of sheet metal producers, which in 2020 decreased slightly, but increased sharply in 2021 and 2022. which is largely on the volume of use of sheet metal products in the domestic market, as well as the market size itself is influenced by the volume of internal manufacturing, which also fell in 2019 and 2020.

According to estimates by TK Solutions, in 2022, Russian enterprises produced 18,734,842 tons of hot-rolled sheet, which is 0.7% less than in 2021. The average annual decline in production (CAGR) of hot-rolled sheet steel for the period 2017-2022 amounted to 0.5%. The leading federal district of the Russian Federation for the production of hot-rolled sheet steel is the Ural Federal District (it accounted for about 37.7% of production for the period from 2017 to 2022), in second place is the North-West Federal District (31.3% of production).

According to data, in Rosstat 2022 the production of hot-rolled steel sheet in the Russian Federation decreased by 8.9%, to 18.75 million tons. 4.18 million tons of round welded steel pipes with an outer diameter of more than 406.4 mm were manufactured, which is 37.3% more than in 2021.^[7]

Decrease in metal production by 0.8%

Metallurgical production in Russia in 2022 decreased by 0.8% compared to 2021. Such data in November 2023 are given on the Rosstat website.

According to the department's materials, in 2022, 51.61 million tons of mirror and cast iron were produced in the Russian Federation in nonsense, dummies or other primary forms, which is 4.1% less than a year ago.

The output of unalloyed steel in ingots or in other primary forms and semi-finished products from unalloyed steel decreased by 10.7%, to 55.47 million tons. The production of alloyed steel in ingots and other primary forms, as well as semi-finished products from alloyed steel, on the contrary, increased - by 2%, to 15.47 million tons.

In 2022, the production of hot-rolled steel sheet in Russia decreased by 8.9% compared to 2021, amounting to 18.75 million tons. The output of steel long products and hot-rolled wire rod fell by 4.1%.

Steel hollow seamless pipes and profiles, as well as their fittings, were produced in 2022 in the amount of 6.15 million tons, which is 5.8% more compared to 2021.

The annual production of round welded steel pipes with an outer diameter of more than 406.4 mm took off by 37.3% and amounted to 4.18 million tons, and the production of welded steel pipes with an outer diameter of no more than 406.4 mm rose by 8% (to 2.43 million tons).

By the end of 2022, the production of cold-rolled steel rolled steel with a width of less than 600 mm in Russia reached 467 thousand tons, which is 2.6% less than a year ago. The production of open profiles from unalloyed steels created by cold stamping or bending in 2022 increased by 3% and exceeded 1.4 million tons, according to Rosstat materials.^[8]

Notes