Global steel demand is expected to exceed 2 billion tonnes by 2023, driven by construction demand and middle class consumption in emerging economies, according to some experts. Severstal is principally based in Russia, a leading emerging market economy expected to grow from US$2 trillion in 2011 to more than US$3.2 trillion in 2017, according to market research, with significant increases in demand for infrastructure projects, consumer goods and automobiles. In the US, our other major sphere of operations, the economy is poised for recovery and growth, with new vehicle registrations expected to climb 6.6% in 2013, say local experts.
Our main operating assets are located in Russia and the USA, at the heart of the major consuming regions with favourable logistics for serving both domestic and international customers. In Russia, our main production facilities at Cherepovets offer easy access to the major steel-consuming markets in the central European part of Russia, and to the CIS and Eastern European steel markets, as well as low cost freight access to the ports of the St. Petersburg region. In the USA, Dearborn is well positioned for the major steel markets of the world’s largest economy, in close proximity to the major auto manufacturers with whom we have long-term contracts, and Columbus is well located for these, and for the Mexican market also.
Severstal is present in the fastest-growing global steel consumption locations. The chart “The global map of average steel usage per capita” shows steel use per capita, and the factors combining to create a favourable steel industry business model: expanding consumer power, urbanisation, considerable infrastructure development and abundant domestic raw materials. Severstal’s locations fit the bill on every count.