Sanctions, loss of foreign markets, and a rise in the central bank’s reference interest rate have severely impacted the metallurgical production in Russia.
In July 2025, the volume of metallurgical production decreased by 10.2% compared to the same month last year, according to data published by the Russian Ministry of Economy (based on Rosstat data). This is the most significant decline in production during the entire period of the war with Ukraine, surpassing even the record negative levels from the early months of the conflict (-6% in June 2022).
The metallurgical industry has been continuously declining since the end of last year – it then recorded a 1.5% decrease, and by summer the rate has accelerated almost three times.
The biggest losses were reported by industrial giants in the sector:
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The Magnitogorsk plant (the second largest in Russia) reported a decline of 18% in steel production and 9% in cast iron in the second quarter.
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The Mechel group recorded an 11% decrease in steel product sales in the first six months of the year.
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TMK (Trubnaya Metallurgicheskaya Kompaniya), the national leader in steel pipe production, lost 18% in pipe deliveries and almost 22% in seamless pipes.
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