It is expected that steel demand in Russia will decrease by 5 to 7 percent this year. Industry officials explained that this situation is due to the high borrowing costs in the country. The general director of Severstal, one of Russia’s largest steel producers, Alexander Shevelev, stated that they anticipate a 5 to 7 percent decline in steel demand this year due to the high borrowing costs in the country. Speaking at an event in the capital Moscow, Shevelev made evaluations regarding the Russian steel sector. Shevelev pointed out that some of Severstal’s small and medium-sized customers have decided to postpone their investments. He added, “They are reducing their investments and depositing their money in the bank due to the current interest rates surpassing some trade types in terms of deposit returns.” Shevelev emphasized that the predictions for steel demand have worsened compared to the beginning of the year. He said, “At the beginning of the year, we were expecting a 1 to 2 percent decrease in steel demand by 2024. However, according to the results of the third quarter, the decline in demand by the end of 2024 could reach 5 to 7 percent.” According to the forecasts of the Russian Steel Association, steel demand in the country is expected to decrease by 6 percent compared to 2023.