This was forecast by Vadim Makhov, deputy director of Severstal-group on strategy an controlling. He said that in 3-4 years upon implementing a number of projects in Russia, Severstal’s domestic market sales will reach 70%. These projects are the hot dip galvanizing line, the large diameter pipe project, and the project for developing production of ship building steel at Mill 5000 in Kolpino. In the first month of 2003, sales in the domestic market exceeded 3.5 billion rubles. 405,000 tonnes of 773,000 tonnes of rolled steel, produced by Severstal in January, were sold to Russian clients.

In describing the market for rolled products, Vadim Makhov said that in the first six months international market prices will be rather stable. They may go up in the domestic market by $30-50 per tonne. This is largely due to price raises for the services and products of Russia’s national monopolies.

Further situation with prices will largely depend on the Chinese market as they have increased consumption dramatically, which had affected prices.

27 Febrary 2003