Steel Construction in Russia Hits Record Low
MOSCOW, February 17. /TASS/. The Russian steel construction industry has reached its lowest activity levels in three years, according to a report by Evraz Steel experts. The industry health ratio, which measures the share of active projects, fell to 65.5% by the end of December 2025, marking a significant decline of approximately 15 percentage points compared to the same period last year. This downturn is largely attributed to macroeconomic factors, including high key interest rates and the strong ruble, which are impacting decision-making in construction, particularly for major export-oriented sectors.
Regional Insights and Economic Challenges
The decline in steel construction activity is not uniform across Russia. The Far Eastern, Northwestern, and Siberian Federal Districts are experiencing the highest levels of construction, primarily driven by projects in the mining sector. Notable developments include the Malmyzhsky and Tayozhny mining and concentration plants, as well as the Udokan project and the Rosatom shipyard in the Murmansk Region. These projects are crucial for maintaining some level of activity in the industry, despite the overall downturn.
In contrast, the health ratio for the steel construction industry in CIS countries has also seen a decline, dropping from 83.7% in the fourth quarter of 2024 to 65.3% by the end of 2025. This decline reflects the broader economic challenges faced by Russia, as domestic companies shift their focus to infrastructural projects within the CIS region. The industry health ratio serves as a forward-looking indicator, and projections suggest that structural steel consumption in Russia will continue to decrease over the next six months, with an anticipated drop of 10-15% in 2026.
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Future Prospects and Market Dynamics
Despite the challenges, Evraz Steel analysts have identified potential growth opportunities within specific segments of the market. Dmitry Eremeev, the company’s market demand development director, highlighted that Evraz Steel Building increased its structural steel shipments by over 40%, reaching more than 72,000 tons by the end of last year. Looking ahead, the company aims to maintain this sales volume in 2026.
Additionally, the global non-ferrous metals market is experiencing a proactive price increase, which could positively impact construction projects related to non-ferrous metals in Russia. These projects are less affected by fluctuations in the ruble and the Central Bank’s key interest rate, providing a degree of stability for the industrial construction market. As the industry navigates these turbulent times, the focus remains on adapting to the evolving economic landscape while seeking new avenues for growth.
