Severstal announced budget adjustments for 2026 as steel demand dropped by 31%. The company plans to reduce capital expenditures by 24% and repair funds by 14% to maintain financial stability. Besides, Severstal will freeze hiring and postpone previously announced wage indexation while continuing essential strategic projects such as its iron ore pellet facility.

This move is in line with recent cost-cutting measures at Magnitogorsk Iron and Steel Works (MMK). MMK previously reported a net loss of nearly 15 billion rubles for 2025, leading to a 10% reduction in management staff and the closure of idle units.

Both steelmakers are now prioritizing liquidity as capacity utilization and market prices continue to decline.