Severstal Owner Sees Rise in Steel Demand Slowing-Report-Shanghai Metals Market

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Severstal Owner Sees Rise in Steel Demand Slowing-Report

Industry News 02:15:56PM Jul 04, 2012 Source:SMM

Shanghai, Jul. 4 (Reuters) - Alexey Mordashov, chief executive and owner of Russia's second-biggest steel producer Severstal , expects the rise in world steel demand to slow in line with Chinese economic growth, the Kommersant daily reported.


Mordashov who owns 82 percent of Severstal and is No. 45 on the Forbes list of the world's richest people, reiterated that the company plans to invest between $1.5 billion and $2 billion in its assets this year, the report said.


"We don't expect (steel) consumption to decline, but we expect a slower consumption growth ... We hope that China will sustain high growth rates, more than 8 percent to 8.5 percent, (it could be) between 9 percent to 9.5 percent," he was quoted as saying.


Growth in global steel production has been slowing, with output expected to remain sluggish in coming months as weak economic growth erodes demand.


According to the latest available figures, output in China, the world's largest producer and consumer of steel, rose by 2.5 percent to 61.2 million tonnes in May, growing more slowly than in previous months.
 

Severstal Owner Sees Rise in Steel Demand Slowing-Report

Industry News 02:15:56PM Jul 04, 2012 Source:SMM

Shanghai, Jul. 4 (Reuters) - Alexey Mordashov, chief executive and owner of Russia's second-biggest steel producer Severstal , expects the rise in world steel demand to slow in line with Chinese economic growth, the Kommersant daily reported.


Mordashov who owns 82 percent of Severstal and is No. 45 on the Forbes list of the world's richest people, reiterated that the company plans to invest between $1.5 billion and $2 billion in its assets this year, the report said.


"We don't expect (steel) consumption to decline, but we expect a slower consumption growth ... We hope that China will sustain high growth rates, more than 8 percent to 8.5 percent, (it could be) between 9 percent to 9.5 percent," he was quoted as saying.


Growth in global steel production has been slowing, with output expected to remain sluggish in coming months as weak economic growth erodes demand.


According to the latest available figures, output in China, the world's largest producer and consumer of steel, rose by 2.5 percent to 61.2 million tonnes in May, growing more slowly than in previous months.