Russian steel production is expected to raise by 6 percent to 7 percent per year in next one or one and a half years, according to the estimation from an international ratings agency- Fitch Ratings.

The main reason leading to the growth of steel output comes from a combination of GDP growth and booming construction industry. Fitch also projects that the GDP in Russia is going to soar by 7.7 percent in 2007, and by 7.2 percent in 2008. 

Besides, it is also said that the strong domestic steel demand will help to stablize the price difference range between domestic and export prices.

Russian production of crude steel totaled 6.3 million tons in May with an increase of 1.9 percent compared to the same month last year, according to the International Iron & Steel Institute (IISI).