The company head Alexander Shevelev of Russian steelmaker Severstal mentioned on October 29 that they expected steel demand to drop by 5% to 7% in 2024 as the high cost of borrowing poses an obstacle to its customers' investment plans.

More and more Russian industrial companies and lobby groups are complaining about exorbitant interest rates and warning that infrastructure development goals may not be accomplished.

The Bank of Russia raised its key interest rate by 200 basis points to 21%, marking the highest level since President Vladimir Putin’s early tenure.

Severstal has shifted its focus to domestic markets after facing Western sanctions in response to Russia's actions in Ukraine. Domestic market now occupies 80% of its sales.

Severstal CEO Alexander Shevelev mentioned the main consumers of steel are the mechanical engineering and construction sectors, and both are essential to the country’s economic foundation.