RUSSIA: CONSUMPTION FORECAST

摘要

The housing development sector sees positive signs, meaning steel consumption may rise this year. However, the construction market will start stagnating in 2020-2021, which will result in a decrease in standard pipe deliveries. A negative factor in the non-residential construction sector is insufficient state financing for national projects towards targets outlined in the May 2018 decree. Investments in oil and gas extraction will be rising in the forecast period on the necessity of the resource base replenishment and high output maintenance as part of the Strategy of Russian mineral reserve base development until 2035. With the share of high-tech horizontal drilling increasing, OCTG orders will remain high. Plans for repairs and maintenance of the existing pipeline infrastructure as well as connection of new fields to the Unified Gas Supply System (UGSS) will contribute to an increase in consumption of large diameter and line pipes. In 2020, provided the start of the Ukhta–Torzhok 3 project and overland construction of the Southern Corridor Phase II, consumption or large diameter pipes may rise more significantly.