Posted on 29 May 2024
The Russian Steel Association and the Chinese Chamber of Commerce for the Import and Export of Metals, Minerals and Chemicals signed last week a memorandum of cooperation in the field of mining and metallurgy, Kallanish notes.
The parties agreed to create a favourable business environment for the mining and metallurgical enterprises of both countries and provide all necessary assistance.
“Our states have long-standing partnerships, the potential for expansion of which is still great,” says Russian Steel Association executive director Alexei Sentyurin.
According to the association, Russian steelmakers decreased investments in 2023, breaking a trend of continuously growing investment seen since the early 2000s (see Kallanish passim). Investments amounted to about RUB 275 billion ($3.1 billion), down by 4% on-year. In 2022, investment exceeded by 40% the maximum first pre-crisis level of 2008, amounting to RUB 286 billion.
The total amount of investment in the development of the industry in 2001-2023 is estimated at about RUB 3.8 trillion.
In the current difficult situation, Russian steel enterprises are also making every effort to solve the problems of import substitution and transition to Russian equipment and components in the shortest possible time, Russian Steel claims.
Last month, 173,000 tonnes of Russian steel and pipe shipments were sent by rail to China and Taiwan, compared to 156,000t a month earlier, which is an increase of 11%, according to Russian Railways (RDZ) data (see Kallanish passim).
In April, Russian production is estimated to have decreased by 5.7% on-year to 6.2 million tonnes, according to worldsteel data. In the first four months of the year, output fell 2.5% to 24.6mt.
Chinese crude steel production fell 7.2% in April to 85.94mt and January-April output was at 343.7mt, down by 3% on-year.
Source:Kallanish
