War causes industrial decline in Russia
By the end of 2024, Russia’s steel industry faced a sharp decline.
▫️ Russia’s largest steelmaker, Magnitogorsk Iron and Steel Works, reduced steel production by 14% and pig iron output by 4.5%. Nornickel, Russia’s leading non-ferrous metal producer, reduced nickel production by 6%, copper by 12%, and palladium by 10%. Additionally, exports of Russian steel and steel pipes plunged by 22% and 77%, respectively.
While companies attribute the decline to planned modernization, the actual reasons include the loss of Western markets due to sanctions, reduced demand and lower prices in Asian markets, and decreased domestic consumption caused by high interest rates and an economic crisis.
Despite claims from the Russian government and propaganda, the war against Ukraine and sanctions are devastating key sectors of the Russian economy. The outlook remains bleak, with industrial production expected to decline further.
