Strategic Positioning of Evraz JSC in the Conditions of Stagnation in the Metallurgical Industry

The Russian steel industry is one of the most important sectors in the formation of national GDP, but in recent years market participants have faced falling prices and increasing costs. This fact is associated with the slowing pace of the world economy and the fall in steel consumption by the largest consumer – China. In Russia, steel production remains one of the cheapest in the world, due to the availability of raw materials, but this fact is often offset by protectionism measures on the part of key importers of Russian steel and a slowdown in steel consumption both in Russia and in the world. The situation on the Russian steel market is complicated by the saturation of the industry – 75% of the market is occupied by 4 major companies: Severstal, Novolipetsk steel (NLMK), Magnitogorsk iron and steel works (MMK), Evraz JSC. In the stagnating sectors of the Russian companies are faced with falling revenues and profitability. Despite this, some companies maintain their financial performance. According to the study, one of the reasons for the stability of companies can be a balanced product portfolio, in which a significant share is occupied by high-value-added products (HVA).