Russia Steel Output Falls 10.4% to 15.6 Million Tons as 2025 Hits 15-Year Low
Updated
Updated · The Moscow Times · Jun 12
Russia Steel Output Falls 10.4% to 15.6 Million Tons as 2025 Hits 15-Year Low
3 articles · Updated · The Moscow Times · Jun 12
Summary
15.6 million tons of steel were produced in Russia in the first quarter, down 10.4% from a year earlier, extending a slump that pushed 2025 output to a 15-year low of 67 million tons.
Western sanctions, weak demand from construction and machinery, and high borrowing costs are driving the downturn, with domestic steel consumption down 14% in 2025 and another 15% in early 2026.
Exports have not filled the gap: shipments lost after Western markets closed were only partly redirected to Turkey, China and former Soviet states, leaving 2021-24 steel exports down by about one-third, or 10 million tons.
Major producers are already cutting hard—MMK posted a 14.9 billion ruble net loss, Severstal's profit fell fivefold, and both companies reduced investment, staffing or maintenance spending.
The pressure reaches beyond company earnings because the sector employs about 700,000 people and supports nearly 100 single-industry towns, while analysts say it may need government help or a future Ukraine reconstruction boom to recover.
As Russia's war economy booms, is its civilian steel industry facing an irreversible collapse?
Barred from the West, can Russia’s steel giants find new markets to survive the sanctions?
Russia’s Steel Output Plunges 12%: Causes, Global Fallout, and Survival Strategies Amid Sanctions and Weak Demand
Overview
Russia's steel industry is facing a sharp decline, with output dropping by 12 percent year-on-year, making it the hardest-hit among major global producers. This downturn is driven by weak domestic demand, increased competition from low-priced imports, and shrinking access to traditional export markets. As a result, Russian steel producers are forced to reorient their export strategies, seeking new international buyers and redirecting products that once served domestic or established foreign markets. These challenges have created a difficult operating environment, pushing the industry to adapt quickly in order to survive amid ongoing market pressures.