The Russian metal industry is continuing it’s recovery, thanks in part to slight recovery in the global economy combining with increasing metal prices and more cost competitiveness amongst different companies.

The analysis from Frost & Sullivan suggests that the Russian metal industry produced around 76.2 million tonnes of raw metals, including iron, steel, cooper and nickel, during 2010, with estimates stating that this is likely to rise to around 129 million tonnes by 2017.

Frost & Sullivan Research Analyst Monika Nowotnik commented “Although the metal industry has been growing for decades, it is still maintaining a dynamic pace and is likely to experience a CAGR of approximately 7.8% in terms of volume during 2011-2017. It is still developing due to new exploration projects supported by the privately owned companies as well as by the Russian Government.”

Nowotnik adds “One of the most significant advantages of the Russian metal industry is the low cost of metal production. This, in turn, is due to the abundance of metal resources, the low cost of energy generation and the large pool of well-qualified yet low cost labour.”

He concludes” Overall, the Russian metal industry needs significant investments for infrastructure and technology development. New infrastructure should include modern plants, up-to-date equipment as well as improved transport infrastructure, especially in Far East Siberia.”