The material on this site is for financial institutions, professional investors and their professional advisers. It is for information only. Please read our Terms & Conditions, Privacy Policy and Cookies before using this site. Please see our Subscription Terms and Conditions.

All material subject to strictly enforced copyright laws. © 2022 Euromoney, a part of the Euromoney Institutional Investor PLC.

Russian steel firms sharpen up for the big league


Cheap, profitable and geared for growth - that is how Moscow?s investment bankers are selling Russia?s burgeoning steel sector. Years of investment are bearing fruit and high international prices are boosting bottom lines. But the big-four steel companies are getting too big for their boots. As they turn their attention to landing large international contracts, the leading companies are getting ready to step into the big league by getting their corporate governance act together and analysts are expecting a round of mergers.

?Steel is going through the process of consolidation, investment and growth that Russia?s oil companies have just finished,? says Anton Khmelnitsky, the head of equities for Brunswick Asset Management.

Russia has the largest iron ore reserves in the world and is the fourth-largest steel producer, with output growing by 6.4% a year, according to Goskomstat (the state committee for statistics). Almost half its steel production is sold overseas, making it the second-biggest exporter after Japan.

The sector is highly concentrated, with the top four players - Magnitogorsk Metallurgical Plant (MMK), Severstal, Novolipetsk Metallurgical Plant (NLMK), and Evrazholding - producing 70% of Russia?s annual 60 million tonnes of crude steel output.

You have reached premium content. Please log in to continue reading.

Read beyond the headlines with Euromoney

For over 50 years, our readers have looked to Euromoney to stay informed about the issues that matter in the international banking and financial markets. Find out more about our different levels of access below.


Unlimited access to and

Expert comment, long reads and in-depth analysis interviews with senior finance professionals

Access the results of our market-leading annual surveys across core financial services

Access the results of our annual awards, including the world-renowned Awards for Excellence

Your print copy of Euromoney magazine delivered monthly

£73.75 per month

Billed Annually


Unlimited access to and, including our top stories, long reads, expert analysis, and the results of our annual surveys and awards

Sign up to any of our newsletters, curated by our editors


Already a user?

We use cookies to provide a personalized site experience.
By continuing to use & browse the site you agree to our Privacy Policy.
I agree