Steel pipe prices in Russia have fallen to their lowest levels [1] in two years, driven by weak domestic demand and excess production capacity. By mid-April, water and gas pipes were priced at RUB 64,600 per ton, the lowest since July 2023, while electric-welded pipes dropped to RUB 63,300 per ton, their lowest since March 2023.
The downturn has affected nearly all segments of the steel pipe market. Production of small and medium diameter (SMD) structural pipes declined by 18% in Q1 2025, while consumption fell by 14%. Shaped pipes saw a 5% drop, general-purpose pipes declined by 7%, bearing pipes plunged 28%, and stainless pipes fell 6%. The only exception was boiler pipes, which recorded an 8% increase in demand.
Industry analysts attribute the price slump to a combination of factors, including high logistics costs and low profitability in the individual housing sector, which has limited flexibility for large manufacturers. Smaller plants located closer to end users have fared better, avoiding some of the financial strain faced by larger producers.
Looking ahead, the outlook for Russia’s steel pipe market remains uncertain. Consumption is expected to contract further, potentially falling to 1.9–2 million tonnes by year-end. While short-term demand spikes may occur during peak construction seasons, the overall trend remains negative. Some industry experts suggest that expanding gas distribution networks could provide growth opportunities, but significant recovery remains unlikely without government support.
As Russian steelmakers navigate these challenges, the sector faces mounting pressure to adapt to shifting market conditions while maintaining competitiveness in an increasingly volatile global landscape.
Sources:
[1] Steel pipe prices in Russia hit two year low from steel radar https://www.steelradar.com/en/steel-pipe-prices-in-russia-hit-two-year-lows/