Steel consumption in Kazakhstan grew by 12% in 2019

In 2019, steel consumption in Kazakhstan increased by 12% to 3.3 million tons against the previous year. The country accounts for 5% of the total steel consumption among the CIS countries, according to CIS Steel Market Outlook 2015–2019 prepared by GMK Center analysts.

Demand for steel in Kazakhstan is supported by government programs. Specifically, Kazakhstan has been carrying out a government program of preferential auto loans to individuals since 2015. In 2015–2019, ₸62 billion ($155 million) was allocated for its implementation.

Also, an infrastructure construction program was implemented in Kazakhstan in 2015–2019. The Nurly Zher Housing Construction Program was launched in 2017. Its funding for 2020–2025 amounts to ₸4,837 billion ($12 billion).

“The highest growth in Kazakhstan is recorded in consumption of cold-rolled products (+45.9% in 2016–2019) and seamless pipes (+51.5% for the same period) due to the development of the oil and gas sector. Conversely, rebar consumption in 2019 was 11.2% lower than in 2015, although the construction output is growing by 5% on average per annum,” says Andrii Glushchenko, GMK Center analyst.

Steel consumption per capita in Kazakhstan in 2019 was 175 kg per annum. In terms of this indicator, the country ranks third together with Georgia (which demonstrated similar results) among the post-Soviet countries after Russia (308 kg) and Belarus (217 kg).

In general, the CIS market showed good dynamics in 2015–2019. A 7.9% increase in steel consumption in Russia in 2019 prompted a 6% increase to 60.8 million tons in the CIS market. However, according to the World Steel Association, steel consumption in the CIS will fall by 10.3% in 2020.