As the Institute of Natural Monopolies Research (IPEM) reports, the semi-annual demand index has become positive for the first time since 2011.
Coal export, which grew by 13.8% from January to June, 2017, compared to the same period in the year before, has contributed a lot to the index growth. China’s curtailment of redundant and inefficient facilities and environment protection policy, which affects the country’s domestic production, has been facilitating the Russian coal export growth. Furthermore, the Chinese metallurgical industry’s demand has also been on the rise.
The demand drop in high tech industries has virtually stopped. Recovery growth may begin in the coming months, provided that the consumer segment of high tech industries maintains its current positive trends. This is especially relevant for the automotive industry, which shows double-digit growth rates.
In the first half of 2017, the IPEM Production index grew by 1.8% compared to the same figures for 2016, while the IPEM Demand index grew by 3.4%. The last time when the demand index growth rate was higher than today was in 2011: back then, the figures grew by 3.9% from January to June.
At the same time, the demand in the investment sector continues to drop. “In a semi-annual perspective, there is a noticeable economic activity boost. Still, the extractive industries are the key drivers, which indicates that the demand is somewhat volatile”, says Evgeny Rudakov, Assistant Head of the Fuel and Energy Industry Research Department, IPEM.
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