Russian metallurgical industry development status

Metallurgical industry is the basic sector of Russian industry. In 2011, the Russian metallurgical industry employment was nearly 1.3 million, 80% of enterprises are belonged to urban construction fields. Look from the production, metallurgical industry (ferrous and nonferrous) output in Russia's GDP accounted for 9%, exports accounted for 11.6%, industrial sector accounted for 5% of employees, taxes accounted for 5% of the budget.

From an international comparative perspective, the Russian steel output ranked fifth in the world, (only behind to China, Japan, the U.S. and India), iron ore production is also fifth in the world, steel pipe production is third in the world. Exports of metallurgical products is second in the world (only behind to China and Japan), aluminum production is second in the world, titanium production is second too, aluminum exports is first, nickel production and exports are first in the world.

Metallurgical Industrial Structure

Russian metallurgical industry includes black, non-ferrous minerals and non-metallic mineral mining; Iron, steel, rolled, steel, iron alloy, refractory materials, coke, aluminum, copper, rare metals; ferrous metals, alloy production and processing of semiconductors; Scrap, scrap metal processing and certain related chemical products. In addition, the metallurgical industry contains a large supplementary enterprises, scientific research and design organizations.

Metallurgical industrial enterprises for nearly eight years achieves vertical integration, reducing the industry's competitive risks in the domestic market, improved investment policies to ensure the safety of their raw materials industries. In recent years, metallurgical industrial enterprises actively carry out services in the field of metal processing and metallurgical manufactures.

The overall commentary of industry development of the metallurgical industry

In 2004, the Russian finished steel production was 53.7 million tons, 29.8 million tons of domestic consumption; 2011, finished steel production increased by 10% (59 million tons), domestic consumption grew by 25.8% (37.5 million tons); steel production increased by 60% (9.6 million tons), domestic consumption grew by 78 percent (10.9 million tons).

Russia's domestic non-ferrous metal products are mainly provided by the Chinese. 2011, the domestic demand for aluminum reached 875,000 tons, compared with 2004 growth of 148.6%. Domestic demand for refined copper in 2011 reached 300,000 tons, an increase of 107% compared to 2004.

The Russian government's anti-crisis measures in preventing the decline in production capacity of metallurgical enterprises have played a very good effect, which ensure the number of jobs, and enable investment projects to be continued before crisis. In recent years, the metallurgical industry upgrading of fixed assets become one of the main factors of the industry to successfully overcome the financial crisis, also make high-tech products with high added value production has been enhanced.

Over the past decade, metallurgical industry used for the upgrading, transformation and expansion of production investments totaled more than 1.6 trillion rubles. Currently, Russian metallurgical enterprises large equipment of wear rate does not exceed 50%, which makes the industry more flexibility to respond to negative changes in the external market environment.

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